While you may be able to purchase a house with less than a 20% down payment, there are some things to consider. The DiMora Team are real estate experts in the Novi and Northville neighborhoods and we know that when a buyer finances 80% or more of a property’s purchase price, the loan is technically considered high-risk. Most lenders require private mortgage insurance (PMI) to protect themselves should the borrower default on the payments. While many borrowers start their home purchase with a down payment lower than 20%, when these loans reach the 20% principal level, PMI typically drops off the monthly payment, and the borrower pays a little less each month out of pocket. So, while it can be done with less, if you can afford to put a down payment as close to 20% as possible. It saves you a few hundred dollars per month, which can be applied to your principal rather than insurance and reduce how long it takes you to pay off the mortgage. Check out below to see what sold in Island Lake Arbors in October 2018:
50005 Streamwood Drive, Novi: 3 bedrooms, 3.1 bathrooms, 2,057 sq. feet, 2 car garage, Sold Price: $365,000
Island Lake Arbors Home Sold
If that “perfect” house means maxing out your budget, keep looking. Remember that even in a competitive market, your dream house will show up at your ideal price just take your time. For more information on Island Lake Arbors, or similar Northville or Novi neighborhoods such as Blue Heron Pointe, Country Club Village and The Villas of Northville Hills, contact The DiMora Team today at 248-505-7728 or firstname.lastname@example.org.