What is a downpayment and how much do you need?
With mortgage rates at historical lows and more people than ever working from home everyone is asking how they can they purchase a house or condo.
Step 1 is getting a downpayment together. There are a range of downpayment options ranging from 0% if you are a Veteran all the way up to 25% or higher down if you want a lower loan amount.
So for example if the house you want to buy is $300,000 and you want to put 20% down you will need to have $60,000 to put toward the house.
Then a bank or lender like Quicken Loans will loan you the remaining $240,000 . This $240,000 loan is also called a mortgage.
See below for amount you would need to put down for different types of loans for a $300,000 loan
So explore all the options and programs to see how much of a downpayment you will need. If you aren’t sure you can reach out to lenders like Quicken Loans and they can help guide and ask you the right questions.
5 ways to get the money for your downpayment?
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