Mortgage Moment- How Much Down?

Michael Holigan : When you buy a house, there's three major questions: how much down, how much a month, and how do I qualify? We're going to cover the first one today, that's how much down, and there's a lot of different ranges. We're going to give you one. We're going to start out with the down payment. Normally that's three to five percent. Some programs require more, some programs require less, but this is average - three to five percent. So, $100,000 house, you're talking about three to five thousand dollars that you need for the down payment portion. That's the equity in your home. Next is closing costs. I don't like closing costs. You're not going to like 'em either, but that's all the costs that is associated with getting into that house. Some of that is title company, if you have a title company, part of that is appraisals, just all kinds of costs to add up. They do add up to quite a bit, two to three percent, so you're looking at two to three thousand dollars. Next comes pre-paids. That's taxes, insurance and interest that you're paying in advance. There's going to be accounts where they collect that every month, but you have to pay part of it in advance to get started. It's normally one to two percent, or one to two thousand dollars on $100,000 house. Now you can add all of that up, you're coming into the range of six to ten percent, or six to ten thousand dollars for everything to move into a $100,000 house. Now that may seem like too much, and there are programs where we can get that in for less, there are where it's more. We're going to cover both types over the next few weeks.

Episode 002 1995 - 96 Season

| Post Tension II | Regular Slab | Pier and Beam | Block and Slab | Watering Foundation | Basements | Radon Gas | How Much Down? | Faucet Replacement |

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