Most of the time, the goal is to put as little down as possible on a home, but paying more money upfront has its advantages. Here are just a few of them for you to consider.
Putting a large down payment can save you thousands of dollars of accrued interest over the loan term. This is especially true with 30-year mortgages.
A larger lump sum can also reduce your rate! Basically, the larger the down payment, the less risk it is to a lender, thus lowering your interest rates.
Similarly, if you have poor credit, you can lower your rate by putting down larger payment upfront. With a large down payment, you reduce your "riskiness," and lenders can offer you a better mortgage rate, regardless of credit score.
If you opt for a conventional mortgage, a substantial down payment can help you avoid paying mortgage insurance. To qualify, you must have a loan-to-value ratio (LTV) of 80%. That means that you'll need to make a down payment of at least 20% of the home price.
If you're unable to put down a large sum all at once, there are still affordable options! Consider the following loans and contact us to learn more about each of them (and more!):
Federal Housing Administration (FHA) and Veteran Affairs (VA) loan provide better financing options for borrowers making a small down payment.
For example, FHA mortgages require as little as 3.5% of the total loan cost for a down payment. VA-eligible borrowers have no down payment options along with inexpensive closing costs.
There is also the option of waiting and saving for a large down payment. However, with government loans, it may not be necessary. Contact us today to see which is the fastest and most affordable option for you.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 155163
8785 Perimeter Park Blvd.
Jacksonville, Florida 32216
Phone: (904) 997-1093
Sharp Mortgages, Inc. strives to ensure that its services are accessible to people with disabilities. Sharp Mortgages, Inc. has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Sharp Mortgages, Inc. makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows sharpmortgages.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
The Sharp Mortgages, Inc. accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Sharp Mortgages, Inc. continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Sharp Mortgages, Inc. website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Sharp Mortgages, Inc. website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: email@example.com