The down payment on a mortgage loan is an important part of the process of buying a home. The more money you put down, or pay in cash for the loan, the less you will need to borrow. A down payment does more than just reduce your overall loan principal, though. It helps both the seller and the mortgage lender to know that you are a serious buyer. It can also help you to get a lower interest rate and to avoid costly fees. In short, the more money you put down, the less likely you are to walk away from your home through foreclosure or short sales. Lenders know this and encourage you to pay down as much as you can.

What Factors Affect How Much to Invest?

In some cases, you will need to pay a certain amount down on the loan. Some types of loan require a…

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