Is putting 20% down on your next home purchase the best option for you?
Is putting 20% down on your next home purchase the best option for you? Today I’ll give you my professional advice.
In today’s market, the buying scene is extremely competitive. Inventory is low, so buyers are engaging in multiple-offer situations to win homes. Putting more money down makes your offer stronger in the seller’s eyes, increasing the chance that they’ll accept it.
If you put 20% down, your interest rates might be a little lower than that of the average person, and doing so also eliminates your need to pay for private mortgage insurance (PMI), which protects the bank in the event of foreclosure. You could also prepay the PMI if you need to put less than 20%.
Many people worry about being able to afford that 20%, but when you work with us, we can help you pull all the equity from your current home and use it as a sizeable down payment for your next one. Jacksonville is a military town, so if you’re a veteran or currently in active duty, you qualify for the VA loan, which is a great 0% down option that also doesn’t require PMI.
“Putting more money down makes your offer stronger in the seller’s eyes.”
If have any questions or concerns about down payments or buying and selling homes in general, don’t hesitate to reach out to us by phone or email. We’d love to hear from you soon!
