Found 12 blog entries tagged as down payments.

The last few years have been financially difficult for millions of homeowners, with job losses and decline in home values devastating families all over the US. As a result, a great number of homes have gone through short sales, which has had a detrimental effect on consumers' credit ratings.

If you've considered or experienced a short sale, one of the biggest concerns you may have is how it will impact your ability to purchase another property in the future. Here are five key variables on how a short sale can impact your next home purchase.

Duration Of Delinquency Plays A Big Role

Short sale transactions take a long time to complete, depending on the state that you live in and the bank's policies. During this process, homeowners in a short sale…

1559 Views, 0 Comments

Read Full Post

Buying your first home is a major milestone in your life, similar to graduating high school or moving out of your parent’s house.

When you buy a Santa Cruz property, you are making a long term investment decision in your future and potentially taking the first step toward your future financial security. However, buying a house before you are ready can actually be a negative move that puts a cramp in your plans.

It is important to assess where you are in life, so that you know whether or not it’s the right time to buy a house.

Some people buy their first home at 21, others at 30 and some might continue to rent for the rest of their lives – the decision depends on personal circumstances. But how can you determine for yourself whether you are…

1398 Views, 0 Comments

Read Full Post

When you are in the market for a new home, you may be faced with numerous options for financing your home. One of the choices you will have to make is whether to apply for a fixed or adjustable rate mortgage.
In some cases, an adjustable rate mortgage (ARM) may be your best option, but keep in mind, they are not the answer for everyone. Adjustable rate mortgages can be risky for some borrowers and it's important to understand both the pros and cons.

When To Consider An Adjustable Rate Mortgage
Perhaps one of the best things about ARMs is they typically have a lower starting interest rate than fixed rate mortgages. For some borrowers, this means it is easier for them to qualify for a loan. 

ARMs are beneficial for borrowers who:

• Anticipate an…

1506 Views, 0 Comments

Read Full Post

One of the challenges you will face when deciding how much money to put down on your new home is whether to put down a larger down payment or to take a bit of money from your down payment and use it to pay "discount points" to lower your interest rate. There are pros and cons to doing both and each borrowers’ situation will be different so it's important to understand which option is best for your individual need.

Some factors you should consider include:

• Cost of borrowing - generally speaking, to lower your interest rate will mean you pay a premium. Most lenders will charge as much as one percent (one point) on the face amount of your loan to decrease your mortgage interest rate. Before you agree to pay discount points, you need to calculate the…

1312 Views, 0 Comments

Read Full Post

When you already have a home, you may be interested in determining if a refinance is a good option. You will not have to worry about restrictions on down payments or some of the problems that can occur with a down payment. However, if you are considering purchasing a home in Santa Cruz or the surrounding communities, understanding down payment restrictions is important.

Gifting Of A Down Payment
There are some programs that will allow you to use a gift for your home down payment. However, before you assume this, make sure you talk to your loan officer. Generally speaking, the lender will require the person making the gift to provide a letter stating the money was a gift and does not require repayment.

Windfalls Of A Down Payment
When people hit the…

1241 Views, 0 Comments

Read Full Post

In order to save up a huge amount of cash for the down payment on your first mortgage, you need a solid savings plan!

When you take out a mortgage on your new home as a first time homebuyer, the more you can pay as a down payment the better. The down payment on a mortgage reduces the principle of the loan and means that you will be paying tens of thousands less in interest payments over the life of the loan.

Most financial experts recommend that you should save up at least 20% of the value of the home as a down payment. Depending on the value of the home that you want to buy, this can be a serious chunk of money. The conventional saving tricks of skipping your morning latte and eating dinner at home just aren’t going to cut it when saving up this…

1307 Views, 0 Comments

Read Full Post

In order to save up a huge amount of cash for the down payment on your first mortgage, you need a solid savings plan!

When you take out a mortgage on your new home as a first time homebuyer, the more you can pay as a down payment the better. The down payment on a mortgage reduces the principle of the loan and means that you will be paying tens of thousands less in interest payments over the life of the loan.

Most financial experts recommend that you should save up at least 20% of the value of the home as a down payment. Depending on the value of the home that you want to buy, this can be a serious chunk of money. The conventional saving tricks of skipping your morning latte and eating dinner at home just aren’t going to cut it when saving up this…

1202 Views, 0 Comments

Read Full Post

When it comes to buying their first Santa Cruz home, many people are unaware of the basic facts of how their mortgage works. A survey by Zillow indicated that more than one third of potential first time homebuyers don’t understand the most fundamental details about their mortgages. This lack of understanding could cost you thousands of dollars, so make sure that you understand your mortgage before you make a serious financial commitment.

Here are a few of the important things that many people don’t know about mortgages and how they work:

Mortgage Rates Can Vary Depending on the Day

Did you know that mortgage rates can change daily? Simply by monitoring the changes in these rates, you could enjoy the benefit of saving a lot of money. Even a small…

1305 Views, 0 Comments

Read Full Post

If you are planning to invest in Santa Cruz real estate, it’s always wise to make as much of a down payment as you can. The more money you can deliver up front, the smaller your mortgage will be. With a smaller mortgage, you will pay less interest over the years, which will save you money in the long run.

The advice from most financial experts is that you should have enough money for a 20 percent down payment before buying a home. This might seem like an overwhelming task, so here are some tips to effectively save money for a down payment on your Santa Cruz real estate.

Eliminate Debt

Get rid of any debt you might have. If you are wasting your money on credit card interest each month, pay off these bills before you start saving. This will free up…

1612 Views, 0 Comments

Read Full Post

Sellers need to know if you are serious about buying their home. Earnest money is a good faith deposit that demonstrates to the sellers that you are serious about purchasing their Santa Cruz home. This deposit can, and probably will be, forfeited if you walk away from purchasing the property.

What is a standard earnest money deposit? There is no set amount, but 1% to 3% of the agreed upon sale price of the Santa Cruz home is typical. The amount varies depending on local customs.

Here are a few precautions you should take to protect your earnest money:
• Never give an earnest money deposit to the seller – not even if you’re buying a home that is for sale by owner (FSBO).
• Make the deposit payable to a reputable legal firm, escrow company, title…

1420 Views, 0 Comments

Read Full Post