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Posted in Mortgage
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Question By
lizwiz8892

1 Contribution
1 Person Helped
How much do Banks want for the down payment?
My husband and I are looking to sell our home and buy a second home and are saving but unsure how much to save for a down payment. How much do banks typically ask for as far as down payment? I know when we looked before the "recession" banks were asking at least 20% but after the "recession" we were eligible for an FHA loan and didn’t need a down payment. Both of our credit scores are around 720, almost not cc debt, one auto loan and $40K in student loans left.

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Top Contributor
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Typically, It depends on your score

The better your score the better the rates and you may need less of a down to qualify,

As a rule of thumb, I suggest that you always put as much as you can down so that you lower the balance as much as possible. By doing this you may also be able to do a 15 year mortgage with a slightly higher monthly payment than a 30 year. .  (This could save3 you as much as 45% of the interest you'd pay on a 30 year mortgage) 

Work on raising your score to the 750-760 range to qualify for the best interest rates and terms.

Good luck

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