Which loan type did you use & why?

[Anonymous]

Our credit is decent and the realtor keeps on suggesting use a zero down payment option.

USDA with 0% down
FHA with 3.5% down
Conventional with 1% down with a 2% grant that totals the minimum 3% required - this grant has no repayment requirement or strings attached

[WindAtMyBack]

I think it's better to make as large a down payment as possible.

But the real answer is a combination of math and your personal psychology.

What is the interest on the loan? What is the return of alternate investments? If the interest on the loan is higher, then make a big down payment. If the loan interest is smaller, then make a smaller down payment and stick the rest in a good investment.

How adverse are you to risk? Does it freak you out having a large debt hanging over your head? How stable is your job? Are you pushing the limit financially?

I don't know what a USDA loan is, but I don't like 0% down. If I understand the 2% grant, that sounds like a good deal.

Which loan has the highest interest? That is a HUGE factor. Unless they are VERY close, I'd go with the lowest interest, pure and simple. Also consider if you can refinance in the future, or if there are early payment penalties.

[Shiprex]

I've had 2 mortgages and I suggest as big a deposit as you can. Then go for a manageable mid to long term repayment type with fixed interest.

My first one was awesome. My savings were offset against interest rates which meant the capital could be paid off quicker. The current one is split 2 ways with fixed interest over different periods paying off the loan a fixed amount.

[midnightmoon05]

Me? 1st time. 35% down. 15 yers. 4.75 interest.
refinanced got 3.:5 interest.
Sold that….
purchase other properties with cash… skip the banks and loans.

Your realtor should not represent you regarding mortgages.

speak to a few mortgage loan officers in you are in the US.
Put down more than 20% to avoid PMI insurance.
go to YouTube to learn about this first.

[NaultD]

You want to pay as much as possible up front. Under 20% down you also have to pay insurance thats for the bank to cover a default. I also understand 0% is the only option for most first time home buyers. It's just super expensive to get the principle rolling with $30 a payment.

You also want to pay an extra payment every year. This will cut the 30 year into 21 years.

[DrPepper12]

30 year fixed conventional at 7.5%

Refied 3x to 15 year 2.375%

Put the equity to work with double digit returns.

We've been VERY fortunate & smart!!

[exitseven]

I got a conventional mortgage. I put down 20% and got a 2.5% mortgage with two points.

[Sun_Kim-Ai]

lmao