Does everyone agree? 20% down?

[Frugal]

I agree on 20%, but think it would ideally be best to put down as much as you can, even 30% or 40%, to pay less interest over the life of the loan. The banks make a fortune on the mortgage business. However, it depends on how long someone will live in their house, and other factors, as well, like total income and expenses.

[disneysteve]

Originally Posted by herdjohnson

I would still have likely 3.5-4 years of saving before I had enough for the downpayment, closing costs, reserves, etc... I'm worried the market may not be so buyer friendly as it is right now.

You should not allow market conditions or economic conditions or interest rates or any other external factors to influence when you buy a home. You should buy when YOU are financially ready to do so. To me, that means that you have a 6-month emergency fund in place AND you have a 20% down payment on a home for which your monthly payment will not exceed 28% of your monthly income. If you don't have your EF, can't afford a 20% down payment or need to borrow an amount that will give you a higher than 28% payment, you can't afford the house and aren't ready to buy.

[poorgradstudent]

I bought my first house two years ago putting down 3%. I understand the reasons why it is not ideal, but I did not have enough money saved up to put down 20%. Although take into account that I got an $8K check from Obama's housing stimulus. And I have a roommate who pays over half the mortgage and utilities. As far as maintenance, I really enjoy doing work around the house. I have spent quite a bit updating and fixing up things, and although I am sure I will not get all of it back when I sell the house, it has been worth it. I hope housing prices go up in a couple years when I graduate and look to sell, but even if they don't I think I will come out a little ahead.

[photo]

Originally Posted by karengirl1988

I don't believe any 20% down, if I needed then it worth it, if I don't, then 50% down is nothing to me.

You work in government, don't you...