Making Cents of Down Payments

Jul 31, 2023, 16:14 PM
Title : Making Cents of Down Payments
Video Id : 792347090
Video CTA : More Info
Date published : Jul 31, 2023, 00:00 AM

What is a down payment? 

A down payment is the initial cash you put down when you are buying your home. It represents a percentage of the total purchase price, and the buyer will often take out a mortgage loan to finance the remainder.

With a larger down payment, the buyer needs to borrow less, monthly mortgage payments are lower, and less is paid in interest over the loan term.

At Ascentra, a fixed-rate home loan requires a minimum 5% down payment and a first-time homebuyer adjustable rate mortgage loan requires a 3% down payment.  To avoid paying private mortgage insurance, a down payment of 20% is needed. 

The down payment funds can come from a variety of sources.  Oftentimes, people use assets like savings or retirement accounts.  Additional sources for funds include gifts from family members, grants or secured borrowed funds.  

Help may also be available in the form of down payment assistance programs.  At Ascentra, we offer a $7500 first-time home buyer grant for qualifying individuals.*

All down payment funds require documentation.  We want to make the process as simple as we can.  We are here to guide you and make sure your home buying experience is as smooth as possible.

We are your mortgage experts.      

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Making Cents - Down Payments - Kristina
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