When you’re buying a home for sale in Lake City, it’s in your best interest to put down as much money as possible – and if you can save up 20 percent or more, you’ll be in great shape. It’s not always easy to save up that large of a sum, but in the end, the higher your down payment is, the lower your monthly mortgage payments will be.
Why You Should Try to Save Up 20 Percent to Buy a Home
If you save up 20 percent of a home’s purchase price before you buy, you won’t have to pay for private mortgage insurance, or PMI. PMI is required by lenders when you’re buying a home with less than 20 percent down, and it’s a type of insurance that protects the lender in the event that you default on (don’t pay) your mortgage payments.
The higher your down payment is, the less money you’ll have to borrow from the bank in your mortgage loan, too. If you’re buying a home that costs $200,000 and your down payment is $40,000, you’ll really only owe the bank a principal of $160,000. That means your mortgage payments will be lower, leaving more money in your pocket each month.
Are You Buying a Home for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
In the meantime, check out the most popular Lake City home searches by exploring the links below.
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