Buying a Home
Plan for a Down Payment
The mortgage crisis has dramatically affected the mortgage lending business. The down payment required to qualify for a favorable interest rate loan is substantially higher than it was several years ago. To get the best rate possible you will likely need to put 20% down. While FHA loans often require as little as 3% down, and 10% down payment loans are possible using conventional financing, rates and private mortgage insurance (PMI) premiums will be higher. If you want the best terms possible, plan to put a significant sum down or consider purchasing a less expensive house, so the money you have saved will make a bigger impact as a down payment.