Do You Need to Put a Large Down Payment on a Home?

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Today we are discussing one of the most common mortgage-related questions we are asked. We are excited to be joined by Brandie Denton of the Waterstone Mortgage Corporation to discuss whether you should wait to put down a bigger down payment, or buy now while rates are low.

To be sure, there are a lot of great advantages to saving up and putting down, let's say, a 20% down payment. It will automatically qualify you for a lower interest rate off the bat, and you get to avoid paying private mortgage insurance. If you put down anything below 20%, you have to pay that private mortgage insurance.

However, the cost of waiting until you have a 20% down payment could outweigh the benefits of not having that PMI payment, depending on your situation. We will have to look at the pros and cons to decide what you should do. Brandy and her team have many different programs to suit different situations, so you never know what you could be passing up.  Housing prices and interest rates are going up and if you aren’t saving fast, it might be a good idea to make a purchase now because conditions are so good. 

Before you make a decision either way, you need to sit down with a mortgage professional like Brandy to identify your goals, what you want to accomplish, and whether buying now makes sense. 

If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you!