How much to save for a down payment on a house
Category: Economics - General
If I am a first time home buyer can I really only put down 3%? What is the recommended amount I should put down for a $450,000 house If I have good credit and how much should I save for closing costs?
It is such a good thing to own your house! Meanwhile, common advice is that you need 20 percent of the purchase price for a down payment. While this isn’t always the case, it can still be a large chunk of money. So, it’s OK if saving for a down payment seems a bit overwhelming. Here are some of the steps to take to get started — which will put you one step closer to moving into your dream home.
As you said, you have good credit, you’ll probably be able to secure a low-interest rate for a $450,000 mortgage, and you might not need to come up with a full 20% down payment because the more money you put down, the lower your mortgage payments will be.
Finally, if you’re thinking about buying soon, it’s a good idea to get your preapproval so you have a better idea of what you can afford. This will also help you have a better idea of how much you need to save for a down payment since the down payment is typically determined by taking a percentage of the home’s purchase price. If I were you, I will consider a lot of options before committing myself to any deals.
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