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Low cost home means low down payment!

Real Estate Today Sep 08 ,2017

Affordable housing is an effective saving policy

The biggest hurdle for home buyers today is the mortgage down payment. A down payment is defined as a part of the purchase price that a consumer pays from his or her own funds. For example, a 10% down payment for a home purchase is structured as Rs 100,000 purchase price, Rs. 90,000 mortgage value and Rs10, 000 down payment.

In the case of a high-cost home, a home buyer has to spend a larger down payment. It’s always risky to give large down payment amount. Despite, one may not gain a better mortgage rate and end up spending their cash buffer for emergencies.

Benefits of making a down payment are that it leads you to carry a lower loan balance. You can also avoid mortgage insurance and one can have more loan options to choose.

But, the choice of loan should depend on the buyer, whether an investor wants to make a down payment or not.

Savvy homes give you exactly what you need, varieties of houses which fit your pocket. It is always beneficial when the investor purchases a low-cost home because it leads to low-down payment. This can save you thousands and lakhs over the course of the mortgage and can put you on a more solid financial footing.

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