How to Save for Your First Home
Today’s lofty prices can mean saving tens of thousands of dollars more for a down payment than in the past. But, it’s still a dream of many young adults to buy a first home.
Mortgage lender Washington Mutual estimates that a buyer who puts down 5% on a $300,000 home with a 5.88% 30-year fixed-rate mortgage might pay $2,133 a month, including fees and property tax, while a buyer who puts 20% down would likely pay $1,682 a month. (The estimate assumes the 5%-down buyer must pay for mortgage insurance.) You’ll also need extra money set aside on top of the down payment for closing costs such as title insurance and mortgage fees, which can reach up to $5,000. If you want to pay “points” to lower your mortgage rate — a smart idea for borrowers who expect to stay in a home several years — you’ll want a few thousand dollars more.
search for : down payment, Washington Mutual, fixed-rate mortgage, property tax, insurance, mortgage fee, points