Everyone says you need at least a twenty-percent down payment on a house. While typical, this advice is untrue and could also cost you massive amounts of equity and kill your dreams of buying a home. What do we mean? Licensed mortgage advisor Hannah Escher is breaking down the math to prove that waiting to save twenty percent down could be a colossal mistake, EVEN if you buy before a housing market crash.
If you didn’t know already, you can put just three percent down to get into your first house. But with a lower down payment comes higher monthly payments, mortgage insurance, and more debt. Is it worth it to get into your first home faster? Hannah did that math for you, comparing buying a home in 2013 with three percent down to buying a home in 2023 with twenty percent down.
“But that was right after the 2008 housing crash!” We hear you. That’s why Hannah ALSO did the math for buying a home with three percent down in 2002 AND buying a home with twenty percent down in 2012 when home prices were still stunted. The math might shock you and prove that a bigger monthly mortgage payment might actually be a smarter financial move!
~~~~
Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup?utm_source=owned_media
~~~~
Find an Investor-Friendly Agent in Your Area:
http://biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
http://biggerpockets.com/findlenders
~~~~
Property Manager Finder:
https://biggerpockets.com/findapm
~~~~
How to Buy Real Estate with Just 3% Down! (Conventional Loans):
https://youtu.be/MrFox0Z_PLI?si=7EdTYiC7EN-goaGR
~~~~
Check Out Hannah’s Other Videos on Funding Your Deals:
https://www.youtube.com/playlist?list=PL-okcLQEqzRHh0c-LlJrNjfQbYlc0dcwu
~~~~
How Much Is a Down Payment on a House?
https://www.biggerpockets.com/blog/down-payment?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Rookie Reply: Do You Have to Put 20% Down on an Investment Property?
https://www.biggerpockets.com/blog/rookie-podcast-142?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Stop! Before Making a Large Down Payment, Read This:
https://www.biggerpockets.com/blog/real-estate-large-down-payment-not-necessary?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Connect with Hannah on BiggerPockets:
BiggerPockets: https://www.biggerpockets.com/users/hannahe16?utm_source=youtube&utm_medium=description&utm_campaign=none
00:00 3% vs. 20% Down Payment on a House
01:53 2013 – 2023 Example
03:27 Home Price and Monthly Payment
06:01 Equity Growth
06:57 2002 – 2012 Example
07:24 Home Price and Monthly Payment
08:44 Equity Growth
09:12 Refinancing to a Lower Rate
10:14 Buy Now or Wait?
12:26 Connect with Hannah!
