Can I Use My Savings For A Down Payment On A First-Time Home Buyer Mortgage? Yes, if you’re a first-time home buyer, you can use your savings as a down payment on a mortgage. In fact, using savings for a down payment is a common decision made by many first-time home buyers.
- It’s important to keep in mind that the amount of the down payment influences your monthly mortgage payment, interest rate, and the overall cost of the loan.
- Your monthly payment and interest rate might be lower if you put down more money. On the other hand, your interest rate and monthly payment might be higher if you make a smaller down payment.
- Before using your savings for a down payment, consider your entire financial situation and make sure you have enough saved to cover any unforeseen expenses, such as emergencies or home repairs.
- In addition, a minimum down payment of 3.5% of the purchase price is required for some loan programs, such as FHA loans, while no down payment is required at all for other loan programs, such as VA loans.
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It’s a good idea to have a conversation with a lender or financial advisor to find out more about the benefits and requirements of different loan programs as well as which ones are best for your specific financial circumstances.