| |
| |
|
|
Loans Information |
|
5% Down Vs. 10% Down - A Comparison
It has always been an issue for home buyers to save their down payment. Many people, on advice from various people wait to save 10%, rather than moving into the home sooner with 5% as a down payment This is not always a good idea. Let me explain; We have 2 young couples, the Jones' and the Smiths. They both have the same amount of money to spend on housing and saving ($1000/month). From that $1000, they are paying their rent of $750/month, and saving the other $250 for their down payment. In fact they're identical people. The Jones' and the Smiths are both looking to buy a $100,000 property. As such, they will need $5000 as a down payment if they purchase at 5% down, or $10,000 if they wish to have 10% as a down payment. To date, they have both saved $5000 with which to purchase a property. The Jones' have decided to buy now and accept that they only have 5% as a down payment The Smiths' have decided to wait until they can raise 10%; thus saving themselves some CMHC costs. What the Smiths' aren't realizing is that while they wait, the cost of the property is increasing... thus incrasing the amount of money they need as a downpayment. They've also not taken into account that the money they are paying in rent is being thrown away, while they could have been putting that against their mortgage. Sure, saving the CMHC fees is a good idea. But is it necessarily the right way to go? Not always. If it takes the Smiths an extra 2 years to save up the extra money, the property could have increased by as much as $15,000 in that time.... meaning that they'd need more of a down payment, as well as having a larger mortgage than if they'd bought earlier. If you'd like to read this article in full, including graphs showing the difference between the Smith's and the Jones' then go to our website at www.workingtogether.ca and review the article titled "5% Down Vs. 10% Down - A Comparison". You'll get the idea; and possibly save yourself a lot of money! About The Author John Carle & Sharon Gregresh are Realtors with Royal LePage - ArTeam in St. Albert, AB. They pride themselves on providing more than just real estate sales and listings. Their clients benefit from a much larger spectrum or real estate services. Contact them any time at information@workingtogether.ca or through their website at www.workingtogether.ca They can be reached by phone at (780) 458-5595
MORE RESOURCES:
Loans - Google News |
|
|
|
RELATED ARTICLES
Getting Good Value Personal Loans Over recent years, personal loans have become a popular solution for many consumers looking to raise finance for a variety of purposes. You can get personal loans for all sorts of things, from debt consolidation to holidays, cars and other purchases. To Find The Right Loan You Must First Find The Right Lender We have found internet shoppers to be the savviest in the mortgage market. Frequently they have submitted their mortgage loan information. Why Choose a Personal Secured Loan? Listed below are some of the many reasons why choosing a personal secured loan makes good sense. Personal secured loans are also commonly known as a homeowner loan. Try Unsecured Loans! If The Word Secured Doesn't Fit Your Financial Statement Big financial goals, no security to supply - it is the perfect circumstances to opt for unsecured loans. Online lending ways have made unsecured loans both accessible and full of innovative options. Cheap Loans Till Payday - Using Cash Advance Loans in an Emergency Need extra cash till payday? It's easy to apply and be approved for an online loan till payday. If you are in need of 100 dollars to 1000 dollars or more, getting a loan till payday has never been easier. A Brief Look at Homeowner Loans Homeowner loans are useful ways to get the things that you need? a loan based on the value of your house, yours to use in whichever way that you need it most.Unlike some financing loans which can only be used for very specific purposes, homeowner loans can serve a variety of purposes? alternate means of auto or vehicle financing, home repairs or improvements, educational expenses or business expenditures, or even consolidating your outstanding debts into a single monthly payment. The Best Day of The Week For Payday Loans Whether your payday arrives every Friday or every other Friday, payday is definitely the highlight of the week. How to spend your payday depends on your goals. Unsecured Loans - Substituting Secured Loans Watching more and more people fall in the trap laid down by the secured loans, you resolved never to take debt help from the lending organisations. Nevertheless, as and when need arises, the lending organisations do have to be approached for help. What is a Personal Secured Loan? A personal secured loan is the generic term for a loan. In simple terms a personal secured loan gives security to the lender on the loan other than a simple promise to repay the loan. Refinance Your Car Loan - 3 Tips For Refinancing Your Auto Loan Online Refinancing your car loan is an ideal way to lower your interest payments or reduce your monthly payments. By using online auto loan lenders you can be assured that you are finding the lowest rate. Wedding Loans Because Wedding May Be Made In Heaven But They Are Certainly Not Made For Free Wedding loans because wedding may be made in heaven but they are certainly not made for free.The one day that encompasses the glamour, the thrill, the dreams, the nervousness, the apprehension, the happiness and the most profound feelings of your life is the wedding day. A Personal Loan And Your Rights You can use a personal loan for many different things including, but not limited to, paying off bills, taking a vacation, buying a car and much more. Interest rates on a personal loan will vary, depending on your credit rating and the institution you are choosing to get your personal loan from. Guide to Secured Personal Loans Here is a useful guide to secured personal loans. A secured personal loan is the generic term for a loan. What is a Home Owner Loan? A UK Home Owner Loan Can Unlock Your Capital To Use Today.Unlock the value tied up in your property with a great value secured Home Owner loan. Bad Credit Secured Personal Loans are Like Desserts-Last Course/Best Recourse for Impaired Credit Plato said, 'We can easily forgive a child who is afraid of the dark. But real tragedy of life is when men are afraid of the light'. What To Consider Before Applying For A Loan Here are some useful tips on what to consider before applying for a loan. If you need money to pay bills or make home improvements, and think the answer is in refinancing, a second mortgage, or a home equity loan, consider your options carefully. Guide to Personal Secured Loans Here is a useful guide to personal secured loans. A personal secured loan is the generic term for a loan. Bank Auto Loans - Best Loans for Stretch Commuters? People have to work to survive. The desire to maintain increasingly indulgent lifestyles drives 13% of workers to travel over 100 miles a day to get to and from work. Quick Cash Loans Online - A Fast Way to Get an Emergency Cash Advance If you need a fast way to get an emergency cash advance, then apply for a quick cash loan online. Payday loan companies now offer instant approval with their paperless process. A Brief Look at the Origins of Lending When trying to discover the origins of lending you might find yourself looking at a lot of unrelated information that doesn't really tell you what it is that you want to know.The origins of lending go back to at least biblical times, with mentions of lending even being mentioned in certain places in the Bible.
|
|||||||||||||||||||
