PROs And CONs Of 5% vs 20% down payment on real estate

Рет қаралды 15,722

Күн бұрын

In this video, Doug Reynolds and I discuss the pros and cons of a 5 percent down vs a 20 percent down payment. You cant listen to advice from 25 years ago when things have changed drastically in mortgage and maybe considering a smaller down payment is a good financial decision for some.
I love real estate and everything that has to do with real estate investing mortgage, and general finance. If you enjoyed this video and found value, please consider subscribing!
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Blog ▶ sacramentorealestateblog.com/
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Web ▶ RealEstateWithDoug.com/
✔More of Doug Reynolds:😍
✔A Full-time realtor with more than 14 years of sales.
✔Sold over 300 homes across Sacramento, Placer, Yolo, and El Dorado Counties.
✔Masters Club Member 2011-2020 (Top 10% of Sacramento Area Realtors) -
✔Sacramento Association of Realtors Gold Award winner (Top 5% Nationwide) -
✔Better Homes & Gardens Real Estate 78% of his business comes from referrals and repeat clients
✔ Business Degree in “Real Estate and Land Use Affairs”- CSU, Sacramento 2006 Graduate
✔ Full Team of professional associates and vendors to lead his sellers and buyers successfully through the entire process while meeting their needs and expectations.
💖 A loving husband to an amazing wife and a father to two beautiful girls
.
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Пікірлер: 20

@ladytracy46 2 жыл бұрын

This is exactly what I wanted to hear very informative thank you you made up my mind I originally was thinking of putting 20% down but when u broke it down the way you did it makes perfect since to just put less its a tax right off anyways I get some back win win for me and I’m not totally broke 😁

@MattTheMortgageGuy 2 жыл бұрын

Glad it was helpful!

@gustavogomez7331 Жыл бұрын

Something tells me this is what a lender would say. A lender might prefer for you to pay interest with a lower down payment. It is like buying a car, some salesmen don't want you to pay in full but to me it makes sense unless you can't afford to do a 20% down. His first point on that was good but some home improvements can wait.

@stevej9134 3 жыл бұрын

Another great collaboration vid. Super informative!! Thanks for great & honest advice.

@MattTheMortgageGuy 3 жыл бұрын

Glad you enjoyed it my dude!

@ReynoldsRealEstate 3 жыл бұрын

Great info Matt! I always enjoy collaborating with you amigo.

@MattTheMortgageGuy 3 жыл бұрын

It’s always a pleasure my man!

@carolmh28 2 жыл бұрын

Exactly what I was looking for.

@MattTheMortgageGuy 2 жыл бұрын

Great to hear! Thanks for stopping by! Subscribe and stay awhile... :)

@abcxyz1636 Жыл бұрын

This is a really good video specially for first time home buyers. However there is one small problem with 5% down. Sometimes buyers reject the offers only based on how much cash component you add to the offer.

@hkawnsanhpauwung9702 3 жыл бұрын

Hi Matt, we bought a 100 year old house in Roseville. We thought it would be just a light fixer but turn out we need major remodel. We are also thinking of putting some addition to be comparable with neighborhood.Can you help us with cash out refinancing or construction loan?

@MattTheMortgageGuy 3 жыл бұрын

Happy to help look at a cash out refi. If you’d like some estimates send mortgage statement and guess of credit score to Matt@MattTheMortgageGuy.com I’ll put together scenarios and schedule a call to discuss. I’ve got great contractor contacts as well Cheers!

@Benmeglei1 2 жыл бұрын

Lender wants you to borrow more. Shocker.

@MattTheMortgageGuy 2 жыл бұрын

Do whatever you like. I personally will take the sub 3% mortgage that is tax deductible and use the extra cash to invest where the return is much larger than 3%.

@TheAnonymous916 3 жыл бұрын

Are PMI really that low though? What would you say the PMI average/estimate would be for someone with a 750 credit score planning to buy a $660k home in Sacramento? I'm debating if I should save up for 20% down, or take a shot at 10-15%, and have money left over for emergencies. If PMI is really as low as you say, I wouldn't mind paying an extra $100 or so.

@MattTheMortgageGuy 3 жыл бұрын

The loan limit in Sac for conventional is $598k / SO if you put 5% down you are capped at about $629k purchase. At that price with 750 score I am seeing $124/mo in mortgage insurance at my favorite lender. **IMPORTANT to know --> MI factor is not the same with every lender. You might pay $200/mo at another lender. Make sure you know how your current lender compares in MI factor. Cheers!

@kbanghart 3 жыл бұрын

Did you decide?

@imlearning1703 2 жыл бұрын

Opinionated

@akila219 Жыл бұрын

So if the interest rates are high, it’s better to put a bigger downpayment 20% or a little more. I’m down here in San Diego ‘bout to purchase a New Construction home.

@uria702 11 ай бұрын

for a new construction yes put as much down as you can. if it's an old house it's better to put 5% and put the rest into work in the house then get it reappraised.