{"id":2326,"date":"2021-10-27T12:29:12","date_gmt":"2021-10-27T16:29:12","guid":{"rendered":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/?p=2326"},"modified":"2021-10-27T12:30:02","modified_gmt":"2021-10-27T16:30:02","slug":"which-down-payment-strategy-is-right-for-you","status":"publish","type":"post","link":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/2021\/10\/27\/which-down-payment-strategy-is-right-for-you\/","title":{"rendered":"Which Down Payment Strategy is Right for You?"},"content":{"rendered":"\n
\"Front<\/figure>\n\n\n\n

While you are still at a bit of a disadvantage using financing in our area due to the extreme seller\u2019s market, it is slowly looking better for buyers. Accordingly, I thought I would revisit the financing question. You\u2019ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.<\/p>\n\n\n\n\n\n\n\n

But there can actually be financial benefits to putting down a small down payment\u2014as low as three percent\u2014rather than parting with so much cash up front, even if you have the money available.<\/p>\n\n\n\n

THE DOWNSIDE<\/p>\n\n\n\n

The downsides of a small down payment are pretty well known. You\u2019ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you\u2019ll pay. You\u2019ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.<\/p>\n\n\n\n

THE UPSIDE<\/p>\n\n\n\n

The national average for home appreciation is now well above five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you\u2019re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.<\/p>\n\n\n\n

THE HAPPY MEDIUM<\/p>\n\n\n\n

Of course, your home payment options aren\u2019t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.<\/p>\n","protected":false},"excerpt":{"rendered":"

While you are still at a bit of a disadvantage using financing in our area due to the extreme seller\u2019s market, it is slowly looking better for buyers. Accordingly, I thought I would revisit the financing question. You\u2019ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,3,1],"tags":[12,9,16,15,20,19,6,17],"class_list":["post-2326","post","type-post","status-publish","format-standard","hentry","category-home-buying","category-mortgages","category-real-estate","tag-home-buying","tag-lakewood-ranch","tag-manatee-county","tag-real-estate","tag-real-estate-agent","tag-realtor","tag-sarasota","tag-sarasota-county"],"_links":{"self":[{"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/posts\/2326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/comments?post=2326"}],"version-history":[{"count":2,"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/posts\/2326\/revisions"}],"predecessor-version":[{"id":2329,"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/posts\/2326\/revisions\/2329"}],"wp:attachment":[{"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/media?parent=2326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/categories?post=2326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bridgettbyzewski.com\/real-estate-blog\/wp-json\/wp\/v2\/tags?post=2326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}