How do mortgages work?
Please can you advise what you think is a fair amount as a deposit…
Areas that are cheaper then others in England.
Any advise x
Thanks
Tags: Mortgages, WorkPlease can you advise what you think is a fair amount as a deposit…
Areas that are cheaper then others in England.
Any advise x
Thanks
Tags: Mortgages, Work
Read some mortgage tips on this site to help you with it
You can get a mortgage for no money down, but I suggest putting at least 5% down.
But remember, there will be a lot of expenses once you close, so you have to make sure you have some cash set aside.
I am a realtor in the United States. I know that you can get a home for nothing down here. But to be honest, the best deal you can get with a mortgage is to put as much as 20% down. You are going to be paying what is known as pmi. Which is mortgage insuance until you pay off at least 20% of the value of your home. This can be an extra couple hundred dollars a month for nothing. Friends of mine recently did a 5% down loan with a fixed rate, but they will have PMI until they own 15% more of their home. Hope this helps!
Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn’t add to the equity to your house. It simply disappear as your pay it.
If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy.
For example, let’s buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month.
Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through.
And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay.