4 Reasons to Make a Bigger Down Payment on Your Cleveland Area Home

It may sound tempting to put down a lower down payment on your new Cleveland area home, but there are significant benefits to saving that larger amount. It’s important to remember that the amount you put down determines how large your monthly payment will be.

In light of new mortgage programs that have just launched, allowing for as little as 3% down, here are 4 important reasons to spring for a bigger down payment in your Ohio real estate purchase.

Easier, faster approval
Especially if you’re ready to buy a home this time of year, during the holidays, a larger down payment can help to speed things along. You’re more likely to get approved with a bigger down payment and if you’re stuck in a situation with multiple homebuyers bidding on a home, offering more money down could put you ahead of the rest.

A better rate
Mortgage rates are everything in Medina and Cuyahoga County real estate, given their rapidly rising tendencies as of late. More money down can land you a better mortgage rate as it lowers your loan-to-value ratio and the lender’s initial risk. In fact, a lower rate could save you thousands over the life of the loan.

Lower monthly payment
The larger the down payment on your new Cleveland area home, the smaller your monthly payment. Not only does this equate to less money spent in interest over time, but also more money in your monthly budget.

No mortgage insurance
With less than 20 percent down, lenders will typically require you to purchase mortgage insurance. This is what protects the lender if you are unable to pay later on and in turn, affects your monthly payment— however, with a larger amount down, you can bypass mortgage insurance.

BOLD Real Estate Consultants can make your journey to homeownership as easy as possible! Contact us today with any questions about the home buying process and for more details about where the real estate market in Medina, Valley City, Columbia Station, North Royalton, Brunswick, Hinckley and Strongsville is headed in the coming year.

Sajag Patel
BOLD Real Estate Consultants

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