Home mortgage loan is probably a topic that affects many of us. After all, buying a home is complex and important and it is logical that it arouses emotions!
Few years ago, you had to have 25% down payment to qualify for a conventional home mortgage loan.
Then, federal government decided to encourage purchase of houses and change law to let households buy with only 10% down payment, as they were willing to pay mortgage insurance.
The required down payment has then decreased to 5% and even 0%, which of course has encouraged households to buy houses further…
The ultimate change, the 0% down payment was not the best idea as households that could not afford to buy a house have still done, with the subprime crisis we know…
The trend has finally reversed and now most banks and financial institutions are willing to finance a home with a minimum 5% down payment, but hardly less.
Nevertheless, even if you pay a 5% down payment, you still have to pay the premiums for insurance because the amount of the down payment is less than 20% and you should still pay it through your bank or financial institution.
That’s all for this article. In the next articles, we will give you a lot more information about those topics.
If you have any comments or experience to share, please write it right away! You will help a lot of people to get good information and avoid mistakes!
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