Your Home Mortgage Down Payment
Bradenton Real Estate, Mortage Information
Do you have the money for a home mortgage down payment and closing costs?
The down payment for a home mortgage is a percentage of the value of the property that you’ve identified for purchase.
Freddie Mac says the percentage will be determined by the type of mortgage that you select. Home mortgage down payments, as a general rule, range from 3 to 20 percent of the property value.
You may also be required to have Private Mortgage Insurance (PMI or MI) if your down payment is less than 20 percent.
Closing costs include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed in addition to any other settlement costs. You can generally expect to pay between from 2 to 7 percent of the property value for mortgage closing and settlement costs. As a home buyer, you will receive an estimate of these costs in a ‘Good Faith Estimate’ or ‘GFE’ from your lender after you apply for a home mortgage.
Having a substantial mortgage down payment will open up more house buying options for you. Getting pre-approved will also put you in a great position to purchase from the best homes.
Contact THE SERENA GROUP for – Bradenton Real Estate Information, and for recommendations for mortgage lenders for the Bradenton, Sarasota, Manatee and Sarasota county areas of Florida.