Home Down Payment Strategy Help

[Complex]

2 minutes ago, csrcsr said:

no there are different plans edo medium elagu monna market lo sagam poyindi

nuvu eda pedthav investments ante chepale monna

[csrcsr]

Just now, Complex said:

nuvu eda pedthav investments ante chepale monna

nena ? naaku antha emi ledu anna single income ikada illu 401k povanga mortage katanga inka emi invest , apatlo india lo plot anthe pedda ashalu kuda emi levu job kapudukovali

[Thokkalee]

2 hours ago, chicagoafdb said:

Home price is around 600K. Need help with down payment strategy.

Builder is offering around 15-18K Buy down options. I can do 20% or more. I am thinking to do 200K, so that monthly EMI bit less. pooling almost my savings.

As I read online they suggest not to do and divert to investments. With these interest rates, what is best, looking for suggestions.

I am very bad at investments, Lost money at India ( bad ) investments, bit with stocks here. I am not sure putting $$ in Index funds will be better?

@veerigadu @ForEverJava @Complex @Thokkalee

If you can afford, min 20% down cheyyi bro.. rates are very high now.. go for ArM loans if you can get a good rate.. DCU lo 5/6 arm is around 5.5%.. if you can afford more, go for a 15 yr loan or 20 yr loan… month ki $1000 extra avuddi.. 

[chicagoafdb]

18 minutes ago, Complex said:

This is up to you.. your balance between risk and safety.

you can always try to make money by investing but that comes with risk.

I hope you have enough cash for closing costs , new home furniture ,emergency funds and at least 6 months of payments  as a backup after putting 20% down.

I like lower monthly payments with 20% down. 

Try to talk with your lender and ask him to create sheets with various scenarios like putting 10% down, 15% down, 20% down. See the difference on monthly payments and closing costs. Now a days PMI has became very cheaper, most of the cases with above 10% down , its less than $75 with good score.

Its mostly on your financial comfort level.

 

 

Sure. I am thinking to down 20-30 percent. To reduce monthly payment. Will check with lender.

Incentives are 8k for closing cost, 10k for mortgage points..no reductions in base price. Any thing else we can negotiate. 

 

[naughty15]

i don't think wise idea to put 20-30% down.  5% good enough and keep cash with you.  If you still think want to put downpayment, then buy 200k apartment some place and rent it.

[areyentiraidhi]

which location is it?

[chicagoafdb]

2 minutes ago, areyentiraidhi said:

which location is it?

DFW Collin county

[areyentiraidhi]

3 minutes ago, chicagoafdb said:

DFW Collin county

Frisco, Propser, Mckinney? 

Who is the builder ? that way we can tell how can we can negotiate with them

[Aryaa]

It’s very sad people are unable to buy such cheap houses with cash 

[areyentiraidhi]

Just now, Aryaa said:

It’s very sad people are unable to buy such cheap houses with cash 

[Anta Assamey]

[Pandubabu]

1 hour ago, csrcsr said:

no there are different plans edo medium elagu monna market lo sagam poyindi

Find a target dated fund , that's better for your retirement age if your provider has one 

[veerigadu]

My first question. Is there a possibility for your potential home to lose its value due to market conditions. If your answer is no, then I would pay 15% down and keep other 5% for emergencies. Just in case if you are laid off. That 5% is your fall back on. 
 

With current interest rates it’s not a bad idea to decrease principal as much as possible. Neeku 7% Kante high returns vacche index fund undhi ani proof em ledhu. Moreover you may risk losing your own money market goes down.

2% interest undi, stock market rising lo unnapudu people may have suggested otherwise. Now it’s a different scenario altogether. 

Final ga, equity meedha kuda loan theesukovacchu in future. If you already 15% equity. So that money can be burrowed back in the worst case scenario. Of course you have to pay interest anukooo. ATB

[Complex]

1 hour ago, chicagoafdb said:

Sure. I am thinking to down 20-30 percent. To reduce monthly payment. Will check with lender.

Incentives are 8k for closing cost, 10k for mortgage points..no reductions in base price. Any thing else we can negotiate. 

 

Closing cost motham cover chesthara ani chudu also always you can put low offer than asking price. Worst case No antaru.

Put offer , play it cool , be ready to walk away from deal in worst case , don't show that you are desperate.  

[k2s]

4 hours ago, chicagoafdb said:

Home price is around 600K. Need help with down payment strategy.

Builder is offering around 15-18K Buy down options. I can do 20% or more. I am thinking to do 200K, so that monthly EMI bit less. pooling almost my savings.

As I read online they suggest not to do and divert to investments. With these interest rates, what is best, looking for suggestions.

I am very bad at investments, Lost money at India ( bad ) investments, bit with stocks here. I am not sure putting $$ in Index funds will be better?

@veerigadu @ForEverJava @Complex @Thokkalee

In my situation,  my lender BofA gave 0.25% less when I make >20% down. So I did 30% down for my house and took advantage of lower interest rates. Again later I did refinance 3 times, so lost little bit of money, but always got best rate as I had >40-50% equity (as house appraised). 

So if your plan is to refinance don't pay more down payment. Use appreciation to your advantage to get more equity

Hope that helps