Buying a Home,  Mortgage

Which down payment strategy is right for you?

You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.

But there can actually be financial benefits to putting down a small down payment—as low as three percent—rather than parting with so much cash up front, even if you have the money available.

THE DOWNSIDE

The downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.

THE UPSIDE

The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.

THE HAPPY MEDIUM

Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.

A positive attitude and enthusiastic creativity are two of the driving forces behind Teresa Butler’s real estate practice. Teresa’s passions are people, houses and art. Since 1983 she has been able to combine her passions to help her clients’ real estate dreams come true. Today, as yesterday, she works earnestly to ensure her clients' needs are met and expectations exceeded. Skill, polished by years of experience and knowledge of her hometown is what Teresa brings to her clients. Growing up in Gahanna instilled hometown values her business is built on. She has watched Gahanna, New Albany and Easton build from the ground up. She has seen many trends and changes throughout the years and can share that knowledge to help you make a better buying or selling decision. Teresa’s clients are some of the happiest and most knowledgeable sellers and buyers in Central Ohio. Every transaction is treated with personalized attention to detail. She works diligently to keep them informed through technology with reports, statistics, neighborhood and area information, all to help them make an informed decision. Teresa is a powerful resource you can rely on to reach your real estate goals. Teresa embraces the latest technology to communicate quickly and effectively while still providing good old fashioned service. She understands thoroughly how technology and the internet have changed the way clients achieve goals and success in real estate. She utilizes all the latest digital tools to help you to make fast and informed decisions. Teresa sets herself apart as an award winning photographer to showcase her listings. Teresa has established herself as a pioneer in real estate photography. After all, a picture is worth a thousand words! Twilight photos exclusively through Teresa, will differentiate your home in the marketplace. Let Teresa’s award winning photos help sell your listing! Teresa can also help with your commercial real estate needs. Backed by years of experience through her broker, Ted Oatts, she will meet your commercial goals. Teresa truly cares for you as her client. She is committed to provide exceptional service to you. She takes time to listen to you, dedicating herself to giving you the results you want. Ready to make a move? Talk to Teresa Today!

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