How Large of a Down Payment Do I Need to Buy a House?

There are several types of mortgage loans you can get to buy a house, and there are various down payment amounts with each type. Simply put, the more money you put down, the lower your mortgage payment. And the larger the down payment, the lower your interest rate will be.

Down payments range from 3% - 20%. You may see ads that say you can buy a house for no money down. In the early 2000's, it was fairly easy to find 0% down loans. With changes in the economy, the increase in the number of foreclosures, and the sub-prime lending crisis, these no cost loans are few and far between, unless you are a military veteran with good credit.

These changes have also made it more difficult for anyone with poor credit to qualify for a loan to buy a house. With less than stellar credit, expect to pay higher interest rates. And if you put anything less than 20% down, you will be required to buy Private Mortgage Insurance that can amount to quite a bit of money.

Real Estate Tips To Make Your Purchase Successful

Buying your first home can be a stressful, nerve-wracking occasion. Even purchasing a new television is not something you want to take lightly. When you compound that purchase price a hundredfold (at least), it's no surprise that many potential home buyers get scared away. But anything you can do to get out of the rat race of endless renting is a good thing. However, if you can make good real estate choices when purchasing, you'll be much more satisfied with your result. Here are some tips that can get you started on the right path.

Get an Agent

There's little reason to go it alone when looking for a new house, especially if you're a first time buyer. Having a good real estate agent by your side can make a big difference. They know the ins and outs of the market and can steer you in the right direction when it comes to finding what you need. Do they have ulterior motives? Well, of course they want to sell you the best home you can afford, but isn't that what you want as well? Remember, when you simply use the listing agent, you are at odds, financially speaking. Their responsibility is to the seller, not to the buyer. Get a buyer's agent and your purposes should dovetail.

California Real Estate Recovery 2012

The National Association of Homebuilders just released a report listing US housing markets showing measurable and sustained improvement from their respective market troughs in housing permits, employment and house prices for at least six consecutive months. This latest report includes 73 metro areas that held their position on the list from last month as well as 11 new metro areas.

It's speculated that the modest improvement in this improving market index indicates that individual housing market are regaining their footing despite some recent reports of weakening in the broader economy.

Now, for an inside take on this report, which I estimate the vast majority of news outlets won't mention.

Think about it, or better yet do a search on Google for the National Association of Homebuilders Improving Market Index. I would bet the majority of the articles that you come across will only mention the fact that the index has improved and not go into detail by looking at the individual metro areas delineated in this report. It's somewhat sad that the majority of news, or what is called news, is just a republishing of press releases.