Don't waste time saving up a bigger downpayment

@nateloans

50.6K followers · usually 4.2K views a post

Views

57.2K

Likes

982

Comments

72

Shares

197

SoundTikTok sound · Dust Collector

Promoted product

Nateloansnateloans.com

Tired of mortgage call centers? Talk directly with Nate Moghadam — FHA, VA, Conventional, Jumbo & Non-QM loans in 14 states. NMLS #906770.

4 videos

Why it worked

The video effectively debunks a common misconception about home buying, providing practical financial advice that resonates with first-time homebuyers. The clear explanation and relatable scenario make the information easily digestible and actionable.

Summary

This video explains that saving for a larger down payment on a house is often unnecessary and can delay homeownership. The speaker, a loan officer, advises that lower down payment options are available and that saving a large sum for a bigger down payment yields minimal monthly savings, while potentially increasing the home's overall cost over time.

Structure

1Introduction to the misconception about down payments
2Explaining low down payment options (3-3.5%)
3Comparing 5% vs 10% down payments and the minimal savings

Original caption

Saving up a bigger downpayment can take years and makes a minimal impact on your mortgage payment. Even if you put an extra hundred thousand dollars down your payment would only drop by around $600 which isn’t the best paying for your buck. All you need to put down on a conventional loan is 3% or 3.5% with FHA, and a lot of times it’s a smarter idea to put the minimum down even if you have more money available so you can keep it as a rainy day fun. Do you want to review your options with me with the L.I.N.K in my bio to schedule a FREE 15 minute call. . . . ##mortgage##mortgagetips##downpayment##firsttimehomebuyer

More from @nateloans

Call to action

Link below to setup a 15-min call!

On-screen text

Don't waste time saving up a bigger downpayment 5% Down 10% Down Purchase Price $500,000 $500,000 Down Payment $50,000 Loan Amount $450,000 Principal & Interest ~$2,771/mo Difference (P&I) ~$154/month

Transcript

This is something you need to understand if you're planning on buying a house and think that you need a bigger down payment. Cause a lot of you have enough money to buy the house right now, but you're gonna waste a couple years to save up a bigger down payment thinking that that makes an impact. When it really doesn't. This is probably the biggest misconception that first time home buyers have. So let me break this down for you. But first my name is Nate, I'm a top 1% loan officer licensed in 14 states and I help people with mortgage tips like this every single day. So if this is helpful for you, please give my page a follow. First thing you need to understand before we jump into the numbers is you don't need a 20% down payment to buy a house. You can buy a house with a 3% down payment with conventional or 3.5% down with FHA. Still, a lot of you have a 5% down payment, which is more than enough to buy a house with FHA or conventional. But wanna hold off until you have 10% thinking that that's gonna make your mortgage payment a lot more affordable. An extra 5% down is $25,000 on a $500k house. Which is gonna take a really long time to save. And at the end it will only lower your mortgage payment by $154. So even if you had the extra $25,000. Do you think it would be worth it to put that down just to save 150 bucks? Probably not. And if you're gonna wait a few years to save up a bigger down payment, what do you think the house is gonna cost at that point? Probably a lot more. I think the best strategy for first time home buyers is to always put less money down so you have some money in the bank as a rainy day fund in case something goes wrong. But at least now you know a bigger down payment doesn't really move the needle that much. If you really wanna lower your payment, you're better off buying points.