• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

More Americans Now Read Food Labels. You Might Be Surprised What They Focus On.

September 18, 2025

Top 100 Companies for Hybrid Jobs in 2025

September 18, 2025

AI Is Quietly Writing Your Résumé — and One Tool Could Misrepresent Your Reputation if You Don’t Take Control

September 17, 2025
Facebook Twitter Instagram
Trending
  • More Americans Now Read Food Labels. You Might Be Surprised What They Focus On.
  • Top 100 Companies for Hybrid Jobs in 2025
  • AI Is Quietly Writing Your Résumé — and One Tool Could Misrepresent Your Reputation if You Don’t Take Control
  • Amazon CEO Andy Jassy Is Fighting Against Bureaucracy
  • Zoom CEO: Best Tips for Running a Video Meeting
  • Airbnb CEO Brian Chesky Is ‘Unhappy’ With Airbnb’s Growth
  • Don’t Make This Medicare Advantage Mistake
  • 11 Money Management Trends You Should Know About
Thursday, September 18
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » Is It Best To Put Down A Large Down Payment, Or Be Agile With Your Savings?
Savings

Is It Best To Put Down A Large Down Payment, Or Be Agile With Your Savings?

News RoomBy News RoomAugust 7, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

This content was originally published on the Apex Home Loans blog.  

Putting down the largest sum of money at your disposal might seem like the best way to go when it comes to your mortgage down payment. There is a certain amount of truth to this, but in reality, bigger is not always better. Ideally, the amount of money you settle on for your mortgage down payment will take into account your monthly budgeting requirements.

 

The 4 Big Advantages Of A Large Down Payment:

 

1. Fewer Mortgage Payments

The larger the down payment, the higher the likelihood that you will be able to afford a shorter mortgage. Unlike some of the other benefits of large down payments, ensuring this perk is available to you is solely dependent on whether or not your post-down payment budget will be able to support the necessary payments.

2. Lower Payment Totals

If you choose to stick to a longer payment plan, each month’s payment will be significantly less than it would have been had you chosen to put less money down upfront. Of course, if you choose a shorter mortgage you will be required to pay more.

3. No Need For Mortgage Insurance 

When the down payment is a lower percentage of the purchase amount, lenders will often require clients to apply for mortgage insurance as a way to protect themselves in the case that a client defaults on the loan. However, if the buyer is able to make a larger down payment, mortgage insurance can be completely avoided.

4. Lower Interest Rates 

The interest rate on your mortgage is dependent on how much you need to borrow. The more you pay out of pocket, the less money you will have to borrow from a lender. This means the interest rate on the loan will be lower and you will lose less money on the loan overall.

Coping Smartly With A Small Down Payment

Making a larger down payment may not be an option for you in your current financial state. Opting to make a smaller down payment will still allow you to purchase your new home, with a few extra conditions. Higher interest rates and having to take out mortgage insurance are the two primary conditions you are likely to come across. Once the down payment is made, your main concern becomes making the most of your monthly mortgage payments. A great coping strategy is to get into the habit of paying off more than the amount due on as many scheduled payment days as possible. Another good strategy is to arrange for an accelerated payment schedule. These small adjustments could help you pay off your mortgage faster, and save you more money as a result. When settling on a down payment amount, the most important issue to factor into your decision is whether or not you are capable of remaining financially secure after the payment is made. If a larger down payment is going to dramatically impact your emergency funds, you may want to reconsider.



Read the full article here

Featured
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

More Americans Now Read Food Labels. You Might Be Surprised What They Focus On.

Burrow September 18, 2025

Top 100 Companies for Hybrid Jobs in 2025

Make Money September 18, 2025

AI Is Quietly Writing Your Résumé — and One Tool Could Misrepresent Your Reputation if You Don’t Take Control

Make Money September 17, 2025

Amazon CEO Andy Jassy Is Fighting Against Bureaucracy

Investing September 17, 2025

Zoom CEO: Best Tips for Running a Video Meeting

Make Money September 17, 2025

Airbnb CEO Brian Chesky Is ‘Unhappy’ With Airbnb’s Growth

Make Money September 17, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

Top 100 Companies for Hybrid Jobs in 2025

September 18, 20250 Views

AI Is Quietly Writing Your Résumé — and One Tool Could Misrepresent Your Reputation if You Don’t Take Control

September 17, 20250 Views

Amazon CEO Andy Jassy Is Fighting Against Bureaucracy

September 17, 20250 Views

Zoom CEO: Best Tips for Running a Video Meeting

September 17, 20250 Views
Don't Miss

Airbnb CEO Brian Chesky Is ‘Unhappy’ With Airbnb’s Growth

By News RoomSeptember 17, 2025

Airbnb’s growth has slowed in recent years, says the company’s CEO, Brian Chesky, but he…

Don’t Make This Medicare Advantage Mistake

September 17, 2025

11 Money Management Trends You Should Know About

September 17, 2025

11 Government-Approved Programs That Put $1,200/Month in Your Pocket (50+ Only)

September 17, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.