Buying a House with Less Than 20 Down
When you can’t afford a full 20% down payment on a San Diego house purchase, you really should consider what it would cost on a monthly basis to buy that San Diego home. When putting down anything less than 20% you’ll be hit with monthly payments of private mortgage insurance (PMI). What this means is you’ll have an extra payment in addition to the mortgage interest and your principal balance payment on the money you borrow to purchase your San Diego house. Plus you will also have San Diego property taxes and your property insurance payments.
Many San Diego homebuyers choose the option of becoming San Diego homeowners without a full 20% down payment. If you choose to go forward in that manner, work hard towards gaining 20% equity in your San Diego home quickly. Because, once you gain 20% equity, you can start the steps to stop making PMI payments. It is not automatic; you’ll have to contact your lender to initiate that process. Part of the process will be to obtain a new appraisal of the value of your San Diego home.
Before you spend $500 on a new appraisal to present to your lender showing that you now have 20% equity in your San Diego home, you’ll want to get an accurate valuation of your San Diego property value and I can help you. For your free San Diego home “pin-point-price analysis”, contact me at 619-741-0111. I’m Kim Ward, Your San Diego Real Estate Advisor; my team and I are here to help!