4 Reasons to Put Down 20 Percent on a Louisville Kentucky Home
By Family Realty
Are you planning on buying a Louisville Kentucky Home? If so, you’ve come to the right place.
Before choosing the home that you want to purchase make sure you are really ready to buy a home by putting down the right down payment.
In today’s post we will break down 4 reasons why you should put down 20% on a home and how this will benefit you as a home buyer.
#1 - Improve Your Chances of Getting a Mortgage
Thanks to the recent crash of the Real Estate market, many lenders no longer lend money to people who put down anything less than 20 percent on a home.
#2 - 20% Down Helps Your To Afford Your Mortgage Payment
Did you know that as a home buyer your debt-to-income ratio has to be about $40 per every $100 that you earn?
Putting down 20% on a home you will actually be able to afford a mortgage loan since going with a 20% down payment will make a mortgage payment even more affordable for you.
#3 – Pay a Lower Mortgage Interest Rate
Another benefit which comes from paying 20% down on a home is that you will also pay a lower mortgage interest rate over the lifetime of your mortgage loan.
#4 – Avoid Paying Private Mortgage Insurance
Did you know that you can avoid paying PMI or Private Mortgage Insurance when you put down a 20 percent down payment on the home you want to purchase? This will save you tens of thousands of dollars over the lifetime of your mortgage.
Another important fact to mention is that when you choose to put 20 percent down on a home you will also instantly build equity in the home and this will protect you should home values drop briefly after you buy a home.
Buy a Louisville Kentucky Home
For more information on how putting down 20% benefits you when buying a Louisville Kentucky Home, or to view the latest homes for sale across town, contact Family Realty today by clicking here to connect with us through our website or calling (502) 458-4100.