May 11 2009
Should you Make a Down Payment?
In the recent past, mortgage companies were extremely flexible. While it has always been preferred that the borrower provide a fair percentage of the Newport Beach property value as a down payment it was not always a requirement. However, with the economy and credit crunch very real in our lives today Orange County Mortgage Brokers have again changed their standards for Newport Beach home loan approval.
If you dream of owning Newport Beach homes it will be important that you save at least 20% of the purchase price of your Newport Beach home. For example, if you are considering purchasing a Newport Beach condo for approx. $400,000 you should have at least $80,000 ready to use as a down payment. If you are looking at a Newport Beach home from $700,000 you should have at least $140,000 ready to use as the down payment. And if you are looking at a one-million dollar property in Newport Beach have $200,000 saved specifically for use as a down payment.
The larger the down payment you make, the less you will need to borrow and less interest will be accrued, this means that you will pay significantly less over the long term.
The best advice is to speak to a professional Newport Beach Realtor at Harbor Realty who will be able to help you determine the right amount for your family to pay for the down payment of your Newport Beach home.