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Dawn Barrier at HOMESMART

Dawn Barrier at HOMESMART


What Down Payment Strategy Will You Use To Buy A Las Vegas Home

What Down Payment Strategy Will You Use To Buy A Las Vegas Home

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

Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Consult with your mortgage professional to give you more details on which option may be best for you.

 

 

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About Dawn Barrier at HOMESMART

Picture of Dawn Barrier  at HOMESMART

Dawn Barrier at HOMESMART

REALTOR

702-919-6915702-919-6915 main

HOMESMART ENCORE- Dawn Barrier (702) 812-4550

Reviews

5sholihan

Dawn is such a consummate professional! My husband and I have bought and sold many homes during our 28 years of marriage and Dawn has exceeded our expectations as an agent. She is the most ethical agent I've ever met. We were very impressed with Dawn's... (more)

5jpmk

She was wonderful. She found properties for us to see & consistently kept us informed as we were on the East Coast. She gave us real informaiton that helped us make a decision. Her assistance did not stop once we bought the house. She was kind, thoughtful &... (more)

5user869344

We have bought and sold several properties, but have yet to experience an agent with the extensive knowledge and professionalism of Dawn Barrier! She located a buyer for our sinking property in Las Vegas, communicated with all parties in a courteous, and... (more)

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