Cash Hash » Loan/ Loans » Cash Loan/ Cash Loans » What is a mortgage down payment?

  #1 (permalink)
: a mortgage down payment. a mortgage down payment

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  #2 (permalink)
: When buying a house you usually have to put down 20% of the buying price and apply for a mortgage for the 80%.
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  #3 (permalink)
: When you get a mortgage, you pay a certain percentage of the total amount right away. This is the down payment.

So, if you got a $100,000 mortgage, and had to pay 10% down payment, you would pay $10,000 toward the mortgage at the same time you sign the papers to close on the house. Then, you would owe the remaining $90,000 over the loan period.
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  #4 (permalink)
: There is no mortgage down payment, that you would be required to pay directly to the mortgage company.

In the purchase of a house, based on the mortgage loan program you are approved for would determine the percentage and amount you would be required to put down to pay for the house. Your mortgage lender would provide the remainder of the funds allowing you to purchase your house.

For the sake of argument, if you purchased a house and the agreed upon price is $150,000, the mortgage loan program might require a down payment of 10%. In order to close this sale transaction you would be required to payout of pocket $15,000.

Your mortgage lender would lend you $135,000 in order for the sale transaction to close. Your monthly mortgage payment would be based on this $135,000 you borrowed. These funds would be placed with a title company on your behalf to settle any debts of the house being bought, such as any current mortgage, liens and back owed taxes. Anything left would go to the seller from which you purchased the house.

#1. Conventional mortgage loan

A.10% down is the normal requirement.

B. 20% down, payment is based on the fact that you would not want to pay Private Mortgage Insurance (PMI).

#2. VA and USDA mortgage loan *

You are not required to have a down payment at all.

#4. FHA mortgage loan *
This mortgage loan normally require approximately 3.5% down.

* These and most government backed mortgage loans require you to pay something akin to PMI called Mortgage Insurance Premium (MIP). You would be required to pay MIP for the life of the mortgage loan or you refinance the mortgage loan, no matter the balance of the mortgage loan.

I hope this has been of some benefit to you, good luck.

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  #5 (permalink)
: this would be the cash payment made to secure the loan on a given piece of property. it is generally a minimum of 20% of the selling price. it can be any amount over 20% and that will lower the amount of the total mortgage to be given on the property. remember there are several closing cost fees and home insurance that also need to be paid when figuring how much you should/ can be putting down as your initial ppayment
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  #6 (permalink)
: If you buy a house for $100,000 and the mortgage company agrees to lend you $90,000 then your down payment is the remainder- that would be 10% or $10,000. The down payment is part of the cash you bring to closing (you actually wire it in from your bank normally). You also pay some costs to the title company and to your mortgage company plus you may receive some credit for instance for a small thing here or there. The mortgage company is obligated to give you a very close estimate of this amount of money when you apply for the loan.
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