Joe Gonzalez -King Of Prussia Mortgages, FHA, JUMBO, VA, USDA and more: Pennsylvania: Plymouth Meeting

Whether a million dollar loan or a first time home buyer, more Realtors, financial planners, borrowers and other business professionals bring their home financing needs to Joe than anyone else in King of Prussia and the Delaware Valley. They come to Joe for one main reason... Results!

TOP 3 Things To Consider When Making A Down Payment

TOP 3 Things To Consider When Making A Down Payment

 

Down payment adviceOne of the challenges you will face when deciding how much money to put down on your new home is whether to put down a larger down payment or to take a bit of money from your down payment and use it to pay "discount points" to lower your interest rate.

There are pros and cons to doing both and each borrower's situation will be different so it's important to understand which option is best for your individual need.

Some Factors You Should Consider Include:

  • Cost Of Borrowing - generally speaking, to lower your interest rate will mean you pay a premium. Most lenders will charge as much as one percent (one point) on the face amount of your loan to decrease your mortgage interest rate. Before you agree to pay discount points, you need to calculate the amount of money you are going to save monthly and then determine how many months it will take to recover your investment. Remember, discount points are normally tax deductible so it may be important to talk to your tax planner for guidance.
  • Larger Down Payment Means More Equity - keep in mind, the larger your down payment, the less money you have to borrow and the more equity you have in your new home. This is important for borrowers in a number of ways including lower monthly payments, potentially better loan terms and possibly not having to purchase mortgage insurance depending on how much equity you will have at the time of closing.
  • Qualifying For A Loan - borrowers who are facing challenges qualifying for a loan should weigh which option (discount points or larger down payment) is likely to help them qualify. In some instances, using a combination of down payment and lower rates will make the difference. Your mortgage professional can help you determine which is most beneficial to you.

There is no answer that is right for every borrower. All of the factors that impact your mortgage loan and your overall financial situation must be considered when you are preparing for your home mortgage loan.

Talking with your mortgage professional and where appropriate your tax professional will help you make the decision that is right for your specific situation.

For help or questions contact:

Joe Gonzalez

Senior Loan Consultant -  NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA  19428 | Direct: 610-355-8039 |  Cell: 610-739-6563

FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia

This material is non-exclusively licensed to Joe Gonzalez and may not be copied, reproduced, or sold in any form whatsoever. Copyright ©2006-2014, Bring the Blog. All rights reserved. Terms of Service.
Comment balloon 1 commentJoe Gonzalez • January 09 2014 06:06AM
TOP 3 Things To Consider When Making A Down Payment
share
TOP 3 Things To Consider When Making A Down Payment One of the challenges you will face when deciding how much money to put down on your new home is whether to put down a larger down payment or to take a bit of money from your down… more
Are We Seeing Signs Of Economic Growth?
share
Are We Seeing Signs Of Economic Growth? Hi, Joe Gonzalez here of the Hope Mortgage Team of Gateway Funding DMS, L. P. in Plymouth Meeting, PA. I have some interesting news to share with you this week. The minutes of the Federal… more
Top 4 Ways to Save For The Down Payment on Your Mortgage
share
Top 4 Ways to Save For The Down Payment on Your Mortgage In order to save up a huge amount of cash for the down payment on your first mortgage, you need a solid savings plan! When you take out a mortgage on your new home as a… more
What You Need to Know About Private Money Loans
share
What You Need to Know About Private Money Loans Private Money financing refers to loans collateralized by real estate, where the source of the funds used to close Real Estate transactions come from private investors. The… more
Beware Of Zombie Titles!
share
Beware Of Zombie Titles! With the economic downturn, anyone dealing in real estate quickly became familiar with previously little-known terms such as foreclosure and short sale. Now that the housing market is picking back up and… more
What’s Ahead For Mortgage Rates This Week – October 28, 2013
share
What’s Ahead For Mortgage Rates This Week – October 28, 2013 Federal government agencies issued reports that were delayed by the government shutdown; and Freddie Mac reported that average mortgage rates fell for all types of loans it… more
Why is NOW the Time to Refinance Your Mortgage?
share
Why is NOW the Time to Refinance Your Mortgage? Refinancing a mortgage is a golden opportunity to lock in today’s low interest rate for the next 15 or 30 years. While interest rates now are still low, there’s a good chance they will… more
The Government Shutdown And Its Effect On Existing Home Sales
share
The Government Shutdown And Its Effect On Existing Home Sales Existing home sales for September fell by 1. 90 percent from August’s revised reading of 5. 39 million sales to 5. 29 million sales. Economists had expected 5. 30 million sales… more
Housing Market Index - Builders Continue To Have A Positive Outlook
share
Housing Market Index - Builders Continue To Have A Positive Outlook The National Association of Homebuilders/Wells Fargo Housing Market Index dropped two points to 55 from September’s revised reading of 57. Builder concerns over labor… more
Get The Lowdown On Private Mortgage Insurance
share
Get The Lowdown On Private Mortgage Insurance You may have heard the term Private Mortgage Insurance when looking to finance real estate. What is PMI, and how do you know when you need to purchase it? The answer can be hard to… more