answersLogoWhite

0


Best Answer

You would be smart to put down at least 20% of the home price. This will protect you from price fluctuations as well as qualifying you for lower mortgage rates.

Another consideration is how much you can afford to pay monthly for your mortgage. A larger down payment (or cheaper house!) will allow you to fix a reasonable payment for the income you earn. In the past, it was recommended that you not get a mortgage for more than 2.5% of your income and that the total payments for insurance, taxes and mortgage be less than 1/3 of your net income.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How much should you save up to make a down payment on a house?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is a down payment on a house?

Most people borrow money from a bank when they want to buy a house, but they usually do not borrow 100% of the cost of the house. They usually do have some money to apply toward the cost of the house, and that amount is called a down payment. So to buy a house costing $200,000 a person might make a down payment of $50,000 and then borrow the remaining $150,000.


Can I make a down payment on a house from an IRA?

Yes you can, and it has some sort of tax benefits if I'm not mistaken


What are some good tricks to save up for a down payment for a house?

The best way to save for a down payment on a house, would be to set up a savings account. You should make a list of your expenses and cut back wherever possible, the money you save could be put into your savings along with any extra cash you can afford to set aside.


You only have enough money to make your credit card payment or house payment Which should you do?

Keep a roof over your head first..... then work on negotiating the cc debt


Make a sentence with the word sufficient?

I'd really like $100,000 to pay for a house in cash, but $4,000 for the down payment will be sufficient.


Should you use extra money to pay off your student loans or put it toward a larger house down payment?

Do the math and see where the most benefit would be, considering the interest you would be paying. A larger down payment may make a difference in your house payment, allowing you to put more into your student loan. However, if you have extra money, it may be best to put some of it into a rainy day fund. Eventually, as a home owner, it will save you from borrowing money for a repair.


Which homophone should be used to make this sentence correct Brett did not have the (sum some) of money needed for the down payment.?

sum


I heard Bank of America is lowering current home loans is that true Need help making my payment since I am unemployed ?

Is there monies to help make house payment, I am unemployed and applying for disability cannot make house payment


Can the treetop Sasquatch get to you before you can safely get back in the house?

well no it will need to get down or jump down but you should make it in time


How do you buy a home with no down payment?

You can purchase a home with no money down when you make arrangements with the owner. Some companies will allow you to use your land as a down payment as well.


How much of a house can you get if your credit score is around 670 and you have little debt and you make 45000 year?

I don't think much more than about $120,000 with a down payment


Do we have to make a down payment for a rent house?

You usually will need to make a down payment if you are buying a rental home & either taking out a loan from a bank or other lender, or working with the owner to finance for you. If you are renting a home, as opposed to buying a home to rent out, then you will need what is called a security deposit, which is usually the equivalent of three months worth of rent payments.