Subprime Mortgages How Large Of A Down Payment Do You Need?
Subprime mortgages offer more flexibility with down payments than conventional home loans. You can choose to put nothing or over 20% down. And with a subprime mortgage, you dont have to worry about paying private mortgage insurance.
Zero-down mortgages allow people with little money for initial costs to buy a home. Even with a zero-down mortgage you can expect to pay loan fees and points, which can still add up to a couple of thousands. However, there are financing plans that wrap loan costs into the mortgage.
The basic zero-down mortgage consists of one loan or two. If your lender decides to split your mortgage, you may need to find another lender to carry the second mortgage.
Zero-down mortgages come at a cost of higher interest rates. They also have larger monthly payments since the mortgage is for a larger amount.
Large Down Payments
A large down payment adds equity to your property quickly. You also have lower monthly payments by having a smaller mortgage. In some cases, a large down payment can qualify you for a loan, in spite of a poor credit...