You donít need 10% or 20% down to get a home mortgage

Written by Syd Johnson

The rapid increase in home prices overrepparttar past couple of years have left many potential home buyers struggling to come up with their 10% or 20% down payment. If you live in a hot market like Los Angeles, Manhattan or Miami, you might be able to affordrepparttar 150847 monthly payments on a home mortgage but have a hard time coming up withrepparttar 150848 one time cash for a down payment.

If you canít come up with a 10% down payment, home mortgage lenders are becoming savvy to your plight and have created many different solutions to help you get financing for your new home.

One ofrepparttar 150849 top ways to get home mortgage financing is with a 5% down payment. This gives most customers a huge break onrepparttar 150850 amount of cash that they need to purchase a home. Inrepparttar 150851 past, 5% down home mortgages were only available as through government funded loans likerepparttar 150852 Veterans Administration Loans.

Now, many lenders including banks, credit unions and mortgage companies will work with their customers to offer low down payment deals. In addition, you can also do a zero down mortgage. In this case,repparttar 150853 entire loan amount will be financed so your monthly payments will be higher than it would have been with a down payment. Also, your home mortgage lender might charge you a slightly higher interest for taking onrepparttar 150854 risk of approving a client without a down payment.

In a hurry to pay off your home loan?

Written by Syd Johnson

It is possible that after a few years you might get sick of making monthly payments on your home. Then it occurs to you, why not put all your extra cash into paying offrepparttar home loan. It certainly sounds like a great idea. After all, no one wants to be in debt forever. If you arerepparttar 150846 average homeowner maybe you should give that idea a second thought.

Unlike other types of debt like credit cards and car loans,repparttar 150847 interest on your home loan is tax deductible. So when you look at your mortgage payments, talk to your tax advisor to see what kind of adjustments will be made once you do you tax returns. If you have car loans, student loans and any other type of personal debt, try to pay those down first and then takerepparttar 150848 cash and put it towards your mortgage.

Take a look at your overall financial picture. If you have any other type of high interest debt, userepparttar 150849 extra cash to pay offrepparttar 150850 outstanding balances on those items before you start putting money towards your mortgage balance. Then you want to look at your investment portfolio. Find outrepparttar 150851 rate of return on your mortgage if you prepay, since itís basically paying yourself. Then compare it againstrepparttar 150852 return that you get from other investments and this will give a bit more to go on before you decided to funnel extra cash towardsrepparttar 150853 mortgage.

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