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What is a good average down payment there days? for the best rate possible?

by DanFlynn1964 from Oceanside, California. Mar 22nd 2011 Reply


Jim Teak II (jimteak)
#237 ranked lender in California - 14 contributions

Dan...ALL Depends On Your Credit Score/FICO Rating...The Higher The Score & The More % Down...The Lower The Rate...720 + 20 % Down = 4.5% Rate Fixed 30 Years...Call With Questions Anytime...Jim Teak II @ 619-293-4200...wwwJimTeak.com

Mar 22nd 2011
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Rich Constantine (rconstantine)
#395 ranked lender in California - 79 contributions

You can get a fantastic rate with FHA financing. The minimum down is 3.5% of the purchase price. Those funds can be gifted to you as well. FHA rates are lower than conventional. The only way to go Conventional is to put 20% down. I have rates in the Low 4's on FHA Financing and the high 4's for Conventional. However, you do have Mortgage Insurance on FHA. Please email me at: rconstantine@myhsoa.com I will be more than happy to quote you after I know the whole scenario. My name is Rich, I hope this helps! RC

Mar 22nd 2011
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Patrick Bodine (pbodine)
#11 ranked lender in Minnesota - 25 contributions

Dan,There are a lot of variables that need to be considered to answer that question (ie) credit score , term of loan ,primary home or investment,FHA or Conventional.I would be happy to discuss your options with you.Please feel free to contact me.Patrick BodineSR.Mortgage Consultant 650 Douglas Drive NorthGolden Valley, MN 55422Cell:651.248.0467 Office:612.305.2284 Fax:612.766.9884 Email:pbodine@bncnationalbank.comWebsite:www.bncnationalbank.com/minneapolis/pbodine BNC National Bank is a nationwide lender with competative rates and fees.

Mar 22nd 2011
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Richard Glover (rglover)
#36 ranked lender in Illinois - 69 contributions

The lowest down payment program in the "normal" mortgage market would be an FHA loan. You can put 3.5% down. If you are looking for a FNMA Foreclosure there is a "homepath" product you can get into a home for as little as 3% down with no Mortgage Insurance.VA and USDA allow for 100% plus financing. In the conventional marketplace, people will tell you that you NEED to put 20% down but this is not true. If you are looking to buy a house I have counseled many people to reduce the down payment and get a seller concession that will pay for your MI up front and this eliminates the monthly MI payment while helping you retain your capital. That example works well because regardless what happens, you will need a place to live and have to pay for it either via a mortgage payment or via renting. However, that home you are looking to buy may not appreciate very quickly and could actaully go down in value. If you don't have a bunch of capital tied up in the house it gives you greater financial flexiblity, a payment you can afford and the potential to be less concerned near term because, the housing market will recover and your position will be very secure as a homeowner when that happens.There are a lot of variables to consider when deciding how much to put down. In the example above, if you did get a seller concession, did the up front mortgage insurance AND applied some of those funds to getting a lower rate, you could then consider a 15 year mortgage. The initial payment is higher but not by very much when you compare the two. Every one has a unique fingerprint and every one's financial needs are just as unique!

Mar 22nd 2011
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Chris Gummerson (cgummerson11)
#393 ranked lender in California - 648 contributions

It also has to depend on the type of financing you are looking for. For example, if you go with FHA financing, you only need 3.5% down. Rates for 30 yr FHA are still in the 4's. You would also have to pay mortgage insurance on this type of loan. Or you can go Conventional financing, and put 10% down, and the rates again are in the 4's for 30 yr fixed. If you only put down 10% on conventional you are also required to get mortgage insurance. If you use Conventional financing and go to 20% down, you will escape paying mortgage insurance.

Mar 22nd 2011
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Jim Marcinkowski (jimmarcinkowski)
#113 ranked lender in Florida - 224 contributions

And it also depends on whether you qualify for a USDA or VA home loan. These are 100% financing, no money down required.

Mar 22nd 2011
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Certified Funding (INFO@CFCMortgageonline.com)
#41 ranked lender in New Jersey - 53 contributions

for NJ 3.5% for fha and 20% to avoid PMI

Mar 22nd 2011
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Rick Pelleriti (RickPelleriti)
#363 ranked lender in California - 59 contributions

Dan, as has been mentioned, there are many variables. In general, you no longer get a benefit once you exceed 40% down - to try and answer your question specifically.That is for the "best rate possible" with a conventional loan. You can get a better "rate" with FHA, but you need to do a financial analysis to see if the upfront mortgage insurance and ongoing mortgage insurance offsets the rate improvement.You really need to compare apples to apples. This can only be intelligently answered by reviewing your financial goals.Rick Pelleriti530-205-9145rpelleriti@ascenthome loans.com

Mar 23rd 2011
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Matt Baker NMLS#190779 (MattBaker)
#32 ranked lender in Arizona - 75 contributions

There a few options for low down with good ficos. FHA allows 3.5% down, and there are some Fannie Mae REO homes that allow 3% down. Other than that, depending on the county and the loan amount 5% would be the conventional minimum. I can help you pull your credit and locate the best possible program with the lowest amount down needed. Thanks

Mar 23rd 2011
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