Down Payment

If I put more money down, will that help my payment?

Putting more money down can help your payment in different ways.  You can put down a minimum of 5% on a conventional loan with a conforming loan amount.  If you put down more than that, you should only put down in 5% increments as each 5% reduces the amount of mortgage insurance you pay.  Putting down 20% gets rid of the mortgage insurance completely.

If you want to put down more money to reduce your payments, then it’s not as much of a difference in your payment as you would think.  Remember, your loan is typically over 30 years, and a few thousand doesn’t make as big of a dent in 30 years.  I always advise my clients when they are looking to put more down, to look at their debts…you will get more “bang for your buck” by paying off credit cards or other debts then by putting more down.

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