Making the Most of a Low-Down Payment

Depending on the type of mortgage you apply for and what you qualify for, you might be able to move into a home with a low-down payment or even no down payment. One of the benefits of a low-down payment is that it may allow you to buy a home sooner than you would have been able to otherwise.

Low-Down Payment

But a low-down payment also gives you a lot more flexibility. How can you make the best use of that added flexibility? Here are some suggestions.

1. Make repairs or upgrades to your new home. If your home needs repairs, you will have thousands more dollars at your disposal to make them than you would with a higher down payment. Repairing your home as quickly as possible prevents small problems from becoming larger, more expensive problems. You also can use the added financial wiggle room to make some improvements to your home. Consider making cost-saving enhancements like installing solar panels or upgrading to more energy-efficient windows.
2. Buy furnishings for your home. If your new home is much larger than your previous one, you might need some more furnishings, so you do not have a ton of empty rooms. It will be much easier to buy them after making a low-down payment.
3. Put more money toward investments. The sooner you start investing, the more time your investments will have to grow. Even a difference of a few years at the start can translate into big returns down the road. So, if you decided not to put a large down payment on a home, think about putting that money into other investments.
4. Make extra payments toward your mortgage when you can. One nice thing about a low-down payment is that you can always change your mind. Nothing is stopping you from deciding you would like to put a bunch more money into your home if you have it on hand. Just make sure that any extra payments you make go toward your mortgage principal, not interest.

Buy a Home with a Flexible Mortgage in Farmington Hills

Now you know how to get the most financial benefit out a low-down payment. Ready to take the next steps? To get started now, please call us today at (248) 788-0800 to schedule your consultation. We can help you buy a home or refinance in Michigan or 15 other states.