Murfreesboro Tn Realtor explains, The New Home Down Payment. For Middle Tennessee Buyers and Sellers

April 28, 2010 - PRLog -- New home Down Payment

You will also probably make a down payment of 3 to 20% of the sale price, though sometimes it's possible to pay nothing down. Since everybody wants to know how to get a house with zero down, we'll cover that first.
If you can't make a down payment it's either because you didn't have the financial discipline to save, or you're not making enough money. Either of those things makes it more likely that you won't be able to make the payments on your house, and that you'll get foreclosed on and lose your house.
Higher monthly payments. The less money you put down, the more you're borrowing. And the more you're borrowing, the higher your monthly payments.
Nothing down means a smaller home. The less you put down, the less the bank is willing to loan you. That means your options will be more limited as far as what homes you can buy. With a down payment -- any down payment -- you can get a bigger loan, and are more likely to be able to get the home you really want.
Harder to find the loan. No-money-down loans are harder to find than something-down loans, which are ubiquitous.
Harder to qualify. It's harder to get a bank to give you a no-money-down loan than a loan where you put anything down.
Private Mortgage Insurance. If you put nothing down on a conventional loan, you'll have to pay for private mortgage insurance. Actually, you'll pay this for any down payment less than 20%, but the less you put down, the more the PMI, and the longer you have to pay it.
If you can afford to put 20% down, you should. You'll get a better interest rate, won't have to pay for Private Mortgage Insurance, will qualify for a larger loan, and will save a bundle on interest.

If you ever have any questions or need help with any real estate needs or know someone who does please feel free to call or email me anytime. I would love to have the opportunity to be your neighbor and realtor.

I never force a seller to continue to use me as their agent if they are not comfortable with my style or methods. I will allow you to cancel our contract at anytime you are not happy with me or you just change your mind.

Please feel free to call or email me anytime.
Mike O'Donnell
615-473-5684
Tema@comcast.net
mbororealestate.com

Home of the no risk listings. The number one reason home owners who are thinking of selling are hesitant to sign up with Real Estate Agent is they are afraid of the long term contract. Now we’ve removed that problem. When you let us help you sell your house we will allow you to cancel the contract at anytime. If we are not living up to what you expect from a realtor or if for some reason you change your mind we will cancel the contract that day. Now that’s peace of mind.

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As a FULL TIME realtor in Murfreesboro TN, I can and will devote whatever time is needed to help you meet your real estate needs.
I treat each client with respect and dignity whether the property you are interested in is worth $5000 or $5,000,000.