How Much Should You Allocate as a Down Payment?
A long time ago, people put 20% of the purchase price as a down payment when buying a home. You would pay this 20% upfront as a "cash" down payment through a cashiers check or by wiring money to the seller, and get a mortgage to pay them the remaining 80% of the price of the house.
These days, very few people expect the optimal 20% down payment. As a borrower, you have choices that provide you greater financial flexibility, or more stability at a higher upfront cost.
Dec.11.2006 [ Filed under: Bay Area Real Estate, Home Buyers, Mortgages ] 1 Comment »
