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Pros of Buying a House Now with Less than 20% Down

Benson Pang / Jun 12, 2022 / Expert Articles

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Today, I'm going to talk about: can I buy a house with less than 20% down? Man, we get this question so much. Should I wait until we have 20% down before buying a house? You are not alone here. Hi, this is Benson Pang, broker owner of Nestmade Mortgage. Brands are expecting to go up 7% on average, double digits in some areas in the US. And home prices are up 21 and a half percent year over year for the last six months straight.

So buying power is expecting to fall by $25,000 to $52,000. What this means is when you're ready by next year, you're going to be buying a smaller house, or you're going to have to pay more for the same house. This is what I want you guys to do here. Know what you can afford and be mortgage ready. Talk to someone and lay out the difference between maybe 10 and 20% down or 5% down, whatever it is that you have today.

See what that monthly payment is and if it's something that you can afford. People think putting down $50,000 more is going to reduce their monthly payment by a lot. In reality, it probably will only go down by $250 to $300 a month. By getting in a house today, you can start building equity on your property, your property taxes are fixed, your monthly payments are fixed, and you can always have opportunities to refinance in the future.

So let's talk a little bit about refinancing. Basically when you refinance it, you're getting into a new mortgage rate. There's going to be a new reappraisal of your house to see what the market value is, and you can actually reduce that monthly payment or even remove that mortgage insurance.

Did you know that you can buy a home for less than 5% down? There are so many programs out there: FHA loans, VA loans. There are all kinds of programs out there to help you. So there's no excuse not to buy a house today. Property values are going up every single month. So we want you to put that cap on it.

We're here to help you. Our loan officers are ready to pick up your call. Call us at (626) 262-4321. Or go on our website, www.Nestmade.com. Check us out, book an appointment with us.

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Benson Pang

Hi, I'm a mortgage expert living in California. I am also licensed to help with your home loan in several other States across the Country. Do you have mortgage questions? How can I help? View Profile

Benson Pang NMLS #897612 Loan Officer 406 E. Huntington Dr Unit 204 Monrovia, CA 91016 (626) 699-8478 benson.pang@findmywayhome.com

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About Benson Pang

Hi, I'm a mortgage expert living in California. I am also licensed to help with your home loan in several other States across the Country. Do you have mortgage questions? How can I help?