![]() Putting in more money upfront lowers the monthly and overall cost of your mortgage, but emptying your savings to buy a home can leave you on shaky financial ground. That can add hundreds of dollars to your monthly mortgage payment. Homebuyers who put less than 20% down pay, on average, 0.58% to 1.86% of the original loan amount per year for PMI, according to Genworth Mortgage Insurance, Ginnie Mae and the Urban Institute. For some homebuyers, rising mortgage rates could be a silver lining.Mortgage rates jump again, sending home buyers to the sideline.Demand for mortgages is dropping and so are interest rates.Yes, lenders once required such a substantial down payment, but they now rely on private mortgage insurance, or PMI, to mitigate their own risk, passing on the cost to borrowers. The 20% down-payment rule is an outdated one, said Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors. ![]() THE REALITY: First-time homebuyers typically put around 7% down, according to data from the National Association of Realtors. THE RULE: You need a 20% down payment to buy a house. ![]() If your employer offers it, you can contribute up to $5,000 pretax and use the funds to help pay for a nanny, day care, after-school care and summer camp registration, among other things. A dependent care flexible spending account is another option. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |