By W. Todd Galde
Your Mortgage Matters
Lack of Downpayment Cited as #1 Reason Renters Stay Renters, according to new Zillow survey
First of all, let me state right up front: if you only have $2 in your pocket for a down payment on a home, you aren't ready to buy a home. This is not 2005, where that $2 bill would get you a million dollar home with a negatively amortizing loan. We don't want that ever again... even millenials should remember the great financial meltdown of 2007-2008. Home ownership in America is a privilege, not a right, and should be earned with at least a modest deposit... even if it's only 3%.
The Zillow survey stated, "Saving for a down payment was a barrier to homeownership for more than two-thirds of renters surveyed... topping other hurdles including qualifying for a mortgage and job security."
Many of the respondents think 20% down is still required to buy a home. Huh? There are great programs available that allow for as little as 3% down and with very competitive rates to keep the payments down.
What is 3%? On a $425,000 home it's only $12,750.
Looking to buy in a higher price range? Did you know that in the nine California counties that touch the bay a $650,000 home can be purchased with as little as 3.5% down? That's only $22,750!
As you can see, buying a home is not as hard as these survey's make it sound. It truly is within the reach of every American.
If you have any additional questions or would like to discuss a specific scenario please don't hesitate to email, text, or call.
Because Your Mortgage Matters...
W. Todd Galde
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