How much of a down payment do I really need?

Hey TGL Family!

We hope you are all enjoying the very sunny days that are here, isn’t it wonderful! It’s perfect to go the park to have a picnic and get some ice cream and to absorb the beautiful Vitamin D.

This week’s blog is going to be about how much do I really need for a down payment?

So, we have all know that you need at least 5% of the total amount of the house you are interested in, however sometimes what they don’t tell you is that the more you put down for a payment the less you will need to pay monthly, bet you didn’t know that did you.

Well, let us tell you a little bit more.

Let’s say the property you are interested in is £750,000, and you put a 5% down payment that will be £37,500, however if you can put more, then it is going to benefit you a lot more.

Why is this?

This is because it shows that you are able to put down a larger down payment, meaning that your monthly mortgage will be less than if you were to put down 5%. The usual down payments go from 5-20% however if you can do more the that will give you an even better advantage of not paying too much.

In reality sometimes its better to pay a mortgage than to rent out, because it can actually be cheaper than expected, well depending on the area you are searching in.

It’s always best to save so that you can secure your future.

We hope this has helped, and if you would like us to write about anything let us know, it doesn’t always have to be about real estate.

We hope the sunshine lasts, and happiness continue on everyone’s faces.

Quote of the week:

"The greatest glory in living lies not in never falling, but in rising every time we fall."

-Nelson Mandela

Have amazing week!


TGL iEstates

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