Since, for most of us, the value of his house, represents his single – biggest, financial asset, doesn’t it make sense, to make wise decisions, in a well – considered, focused manner? There are so many decisions to make, when purchasing your home, especially, when one is a first – time homeowner, many, overlook, some relevant issues, and how it might relate, to living and enjoying, one of the principal components, of living the American Dream. This issue is, considering, and deciding, how much to put DOWN, on the house. Most people rely on using mortgages, for much of the necessary funds, but, down – payments, should also be considered. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, what this means and represents, and why it’s an important factor, to consider and better understand.
1. Delve deeply; discover; decide; dollars: Before you can attempt to make a decision, it’s important to do some research, and delve deeply, into the options, in terms of the require down – payments, and all, related issues! You need to discover, what’s available, the pros and cons, and which, might, best serve your needs. Although, most down – payments, are 20%, many other amounts, under certain circumstances, may be available. Know how many dollars, you have saved for this focus, and, whether, putting down, less, may permit you, to buy, more home. Realize, however, that the greater the monthly payment, and total principal, involved, might affect your ability to qualify for a mortgage.
2. Options; opportunity cost of money; offers/ offering: The better you understand the options, and available offers, the easier it might be, to know, which offering, to seek! One factor, to consider, is the opportunity cost of money, meaning, what rate of return, you might receive, with the available funds, and whether, that makes it, pay!
3. Worth; worthwhile; when; where: What is the specific house, worth, and does, putting less funds, down, permit you, to buy, a significantly better home? Is this a worthwhile experience, etc? When might you determine, how to proceed, and where, would you be comfortable, proceeding?
4. Needs; your nerves: Don’t try to live up to the Joneses! Rather, align your nerves, and comfort zone, and whether, buying – up, will significantly, better address your personal needs, and requirements!
A wise homeowner makes the best personal decisions, which includes knowing, and deciding, how much, makes sense, to put DOWN. It’s smart to make an informed, well – considered, decision!