WHICH DOWN PAYMENT STRATEGY IS RIGHT FOR YOU?















You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a
home. The logic behind saving 20 percent is solid, as it shows that you have the financial
 discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.
But there can actually be financial benefits to putting down a small down payment—as
 low as three percent—rather than parting with so much cash up front, even if you have
the money available.
THE DOWNSIDE
The downsides of a small down payment are pretty well known. You’ll have to pay Private
Mortgage Insurance for years, and the lower your down payment, the more you’ll pay.
You’ll also be offered a lesser loan amount than borrowers who have a 20-percent
down payment, which will eliminate some homes from your search.
THE UPSIDE
The national average for home appreciation is about five percent. The appreciation is
independent from your home payment, so whether you put down 20 percent or three percent,
the increase in equity is the same. If you’re looking at your home as an investment, putting
 down a smaller amount can lead to a higher return on investment, while also leaving more
of your savings free for home repairs, upgrades, or other investment opportunities.
THE HAPPY MEDIUM
Of course, your home payment options aren’t binary. Most borrowers can find some common
ground between the security of a traditional 20 percent and an investment-focused, small down
 payment. Your trusted real estate professional can provide some answers as you explore
 your financing options.

Contact me to put you in touch with some great Mortgage lender.
Asifa Zia
Licensed in VA
Premier agent with Zillow and trulia
Member of NAR, VAR, PWAR
Pearson Smith Realty
43777 Central Station Dr #390, Ashburn, VA 20147
Offices in Ashburn, Fairfax, Woodbridge, Sterling, Leesburg VA

Cell:540-729-3470
Office:(571) 386-1075
Fax:571-386-1081


Find out what is your home worth Click Here

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