Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [down-payment]

to be used for question that related to initial upfront payment made for acquiring an asset [typically used in context of Car or House] while the balance is funded as loan.

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Why do sellers care about down payments?

I'm going through the process of buying a home now. Whenever I make an offer, the seller wants to know how much of that will be down payment. Why do they care? Isn't the combination of the down payment plus the bank's mortgage payment going to be…
David says Reinstate Monica
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What happens if you can't pay at an auction?

Based on this question about wholesaling homes - what happens if somebody purchases a home at auction, places their down-payment, cannot find a buyer, and backs out of the auction? I'm assuming they would forfeit their down-payment, but what else…
Tyler M
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Should I pay more than 20% down on a home?

I'm starting to consider buying a home in a year or three. I'll have a lot of money available at that time -- perhaps enough to do more than the standard 20% down payment. I might be able to manage something more like 30-50% (depending on exactly…
user296
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Buy house with down payment, no loan, sell instantly

I just read Rich Dad Poor Dad, and I have no idea about mortgages, loans or real estate. The author of the book describes a scenario in which a property is found for a cheap price (auction in this case), then acquired via a down payment and…
Opcode
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Is there any reason not to put a 35% down payment on a car?

I went to the car dealership and was planning to finance a car under my brothers name, but since his credit is new AND he just financed a car 2 months ago, the salesman said it probably wouldn't work. The car I'm buying costs $15,550 and I'm…
Julian C
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How is making a down payment different from getting a smaller loan?

What is the difference between these two things? $100k loan with $20k down payment to buy a $100k thing $80k loan with $0 down payment to buy a $100k thing They seem effectively identical. But in that case, why are down payments even regarded as…
tklodd
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Is it better to use a 401k loan to make a down payment or to put less than 20% down?

I'm about to buy a house and am considering two options: Make a 12% down payment and pay for mortgage insurance Take out a 401k loan and make a 20% down payment I'm having a hard time finding resources that really discuss the pros and cons of each…
James McNellis
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Should I wait until I have a 20% down payment to buy a home?

With an FHA loan that only requires a 3.5% down payment, I'm able to buy a home right now and comfortably afford the monthly payments. However, I know that means I'll pay PMI and more interest over the life of the loan. A 20% down payment would…
cabbagecalculator
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60% Downpayment on house?

My fiancee and I are shopping for a house, and very fortunate to have the assets to allow us to make a healthy downpayment. We both like the idea of a lower monthly mortgage payment, specifically the career flexibility that comes with it. We are…
Anthony
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Will our hefty student loans affect our chances of getting a mortgage?

My husband and I live simply but we're content. I'm an avid budgeter and love finding ways to be frugal. My dilemma right now is that we've been able to keep our living expenses below what we make, but I don't know what our focus should be for…
JCarterRN
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Should I put more money down on one property and pay it off sooner or hold on to the cash?

I've a huge chunk of money saved up for a down payment on a property that I'd eventually like to pay off and use as a rental. The assumption is that the property value will go up substantially over time because I intend to buy in a great…
Giablo
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A good investment vehicle for saving for a mortgage down payment?

I've calculated that I will be able to save approximately enough for a 20-25% down payment on a home (at my back-end-ratio affordability level) in the next 2-3 years. I'm maxing out contributions to my Roth IRA already, and plan to withdraw $10k…
Mike
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How much of a down payment for a car should I save before purchasing it?

I am thinking about getting a new or used car from a local dealer in town. I have worked and saved some money to use as a down payment for it. Some people have told me that I should save nearly all the price of the car before purchasing it, while…
foobarfuzzbizz
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I'm 20 and starting to build up for my mortgage downpayment, where should I put my money for optimal growth?

I have no credit, no loans, and am a contractor for $40/hr at a company and I expect to work here for quite a while (job security should be above average). Every week, I allocate $300 to my Mortgage Preparation Fund. I keep it in a high-interest…
Zaenille
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To buy a house, is a 20% down-payment required for a mortgage?

My wife and I want to buy a house. The price is well within our means. The mortgage payment would be less than 25% of our gross income and we have no other debt, so we're comfortable with the payment. However, a 20% down payment would wipe our…
jas
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