Down Payments: How They Work, How Much to Pay

Down Payments: How Much Should You Pay?

The Balance/Theresa Chiechi

But top managers at companies in the fields of scientific research and technology services saw their pay decrease by 4.2%.
It is the first time that news came up first since the technology company began publishing its yearly review a decade ago.Vera Chan, the company's senior editor and web trend analyst, said the BP oil spill was the most searched topic for term for a variety of reasons.
裘德韦伯(Jude Webber)
这里有一些散步和骑行的小径可通往其他的湖滨社区以及市中心,骑车去市中心15分钟可达,开车10分钟。附近有步行者艺术中心(Walker Art Center)和几座博物馆。冬天湖上很多人玩冰球和滑冰运动;夏天则流行划独木舟、游泳和钓鱼。
n. 紧张,拉紧,血统
下面这条消息,可以给人带来一线希望:市价房的租金太高了,它们明年可能涨不了多少。“好消息是,租金不会再涨了,”米勒说,“坏消息是,它们很可能也不会下降。”

What Is a Down Payment?

A down payment is an upfront payment you make to purchase a home, vehicle, or another asset. The down payment is the portion of the purchase price that you pay out-of-pocket (as opposed to borrowing). That money typically comes from your personal savings, and in most cases, you pay with a check, a credit card, or an electronic payment.

Down payments are often, but not always, part of obtaining a loan. For example, when you see “zero down” offers on vehicles, no down payment is required. Some home loans don't require a down payment either. However, it is sometimes wise to make a down payment even when you don’t have to. The down payment often covers a meaningful percentage of the total purchase price (such as 20%). You pay off the remainder of the loan over time with regular installment payments unless you pay the loan off early with a large payment or by refinancing.

For example, you buy a house for $200,000. You have saved $40,000 for this purpose, so you bring a cashier’s check for a $40,000 down payment (which is 20% of the purchase price) when you close on your home loan. As a result, you’ll only borrow $160,000, which you can pay off with a 30-year mortgage.

How Much Should You Pay?

王春法说,在出版前应加强审查和评估。
但是又一次,科比仍然表示自己很健康,自己的投篮很好,之后就将话题转向了关于他的队友和球队赛程上面。
上海社会科学院的专家周海旺告诉环球时报:“上海自2014以来就采取了一系列强硬措施,包括改造城中村和规范群租来控制人口增长。”
If 2017 was the year policymakers began to worry about the growth of the “precariat”, 2018 will be the year they try to do something about it.

The Pros of a Larger Down Payment

A bigger down payment helps you minimize borrowing. The more you pay upfront, the smaller your loan. That means you 中国版REITs渐行渐近,“公募基金+ABS”呼之欲出 over the life of the loan, and you also benefit from lower monthly payments. To see how this works for yourself, gather the numbers from any loan you’re considering and plug them into a loan calculator. Experiment with adjusting the loan balance and watch how the other numbers respond.

家电家具联手促销 佛山泛家居行业渐趋成熟

  • Lower rates: You might qualify for a lower interest rate if you put more down. Lenders like to see larger down payments because they can more easily get their money back if you default on the loan. By reducing your lender’s risk, you can potentially reduce your interest charges.
  • Mortgage insurance: When buying a home, you might be able to dodge private mortgage insurance (PMI) and other fees with a bigger upfront payment of 20% or more.
  • Smaller monthly burden: Low monthly payments can make your life easier. If your income changes (due to job loss, for example), lower required monthly payments give you more wiggle room.
  • Future borrowing power: A large down payment also makes it easier to qualify for additional loans in the future. Lenders like to see that you have more than enough income to meet your monthly obligations, and they evaluate your finances with a debt-to-income ratio. Your debt-to-income ratio compares your total monthly debt payments to your pre-tax monthly income. A lower monthly payment means a lower debt-to-income ratio, which makes you look better to potential lenders.
  • Potential equity: Sometimes you can borrow against assets like your home, using the asset as collateral. The larger your initial down payment, the sooner you build a significant amount of equity in your home, which you might be able to borrow against with a home equity loan or line of credit. Your equity is the amount of your home you actually own. For example, if you have a home valued at $200,000 and a mortgage balance of $100,000, you have 50% equity in your home, or $100,000. A lender might offer you a home equity loan or line of credit for a portion of that $100,000.

The Pros of a Smaller Down Payment

Accepting the award, he enthused: 'First off, I want to start off by saying that I'm not really sure how I got this because I've had my album out a few years, but I've got one coming,' before thanking his fans and MTV. Elsewhere, Kendrick Lamar was presented with Best Video, though the rapper was unable to attend the event, instead thanking fans via a video link.
Hurun’s China Rich List, which tracks more than 2,000 private entrepreneurs with a net worth of $300m or higher, added 179 names to its roster this year.

  • Buy sooner: Saving 20% for a home purchase can take years. For some, it can take decades, and that may not be acceptable in your situation.
  • Emergency reserves: If you do happen to save a significant amount, it’s scary to part with all of that money. What if something happens (your car breaks down, health problems arise, and so on)? Putting all of your free cash into a house or car means your money is tied up in something that might be hard to sell. Some people aren’t comfortable with that scenario.
  • Resources for improvements: When it comes to a home purchase, small down payments are tempting. You get to keep cash on hand for those inevitable improvements and repairs.
  • Other priorities: You might prefer to use the funds for other purposes, such as retirement savings or growing your business.

population
为了让故事更符合现代读者的口味,新作加入了一些“小花样”,包括吸烟会导致癌症的广告词以及一位跟邦德不相上下的女性。
2. The new one childplus policy will substantially raise the birth rate, contributing up to 2million new children to the 2014 economy, a 15 percent one-year lift that willonly further boost consumer morale and spirit.

Lender Requirements

It’s not uncommon for lenders to set a minimum required down payment (but you can pay more if you like). Again, a larger down payment reduces lender risk. If they foreclose on your home or repossess your auto, they don’t have to sell it for top-dollar to recover their investment.

9. CO2 in the Earth's atmosphere passes 400 parts per million
[tr?'din?l]
When it was set up in 2002, Teach First’s aim was to encourage more graduates to try teach-ing. Amid worries that the best brains in the country were being lured into the City of London, accountancy and law, the idea was to tap some of their brain power for state schools, in an attempt to tackle educational inequality.
一位伦敦软件神童的“硅谷梦”成真,雅虎(Yahoo)斥资近3000万美元收购了他制作的新闻应用。
不过目前来看,这些潜在的乌云似乎都没有遮住特斯拉在帕洛阿尔托总部的阳光。特斯拉仍然坚持在2020年之前年产50万辆汽车的中期目标。这在很大程度上要取决于Model X是否有能力维持当前的势头。特斯拉已经大大提高了资本和研发支出,以确保Model X的顺利发布(虽然已经推迟了一年)。
“这是关于‘我们是谁’的基本问题,”伦敦大学伯克贝克学院的政治学教授埃里克?考夫曼(Eric Kaufmann)说,“作为这个国家的一员意味着什么?它是否已经不再是‘我们’的国家?——‘我们’是指占多数的民族。
If you are working your butt off and not getting paid enough to pay your bills, you might be overqualified and underpaid for your position. Go find a job that pays what you deserve.

Here are common down payment requirements:

  • For home purchases: Paying at least 20% allows you to avoid paying for PMI, which protects your lender if you default on the loan. If you can’t bring 20% to the table, an FHA loan might be a viable option, requiring only 3.5% down. However, you still pay for insurance with an FHA loan, and you need to evaluate whether or not you’re in a good position to buy if you’re short on funds.
  • For auto loans: Mainstream lenders might require at least 10% down. However, some lenders are willing to allow up to 110% loan-to-value (based on Kelley Blue Book values). Your loan-to-value is the amount of your loan compared to the value of your asset.

Cash and Alternatives

In most cases, down payments come as “cash” (or more likely a check, money order, or wire transfer), but cash isn’t always required. For example, land can sometimes function as a down payment when applying for a construction loan.

Song “Beautiful China”(Sha Baoliang and Xu Qianya)

  • 统计局:上半年国民经济总体平稳、稳中向好
  • 防止虐待动物协会南澳首席检查员安德里亚·刘易斯表示,对工作人员来说这是一件“令人心碎”的事。
  • A balloon payment, in some cases

As with many situations, the first steps you take can sometimes help you or haunt you for years to come, so it’s essential to choose your down payment wisely. Once you've decided on a number, start saving up so your plan is a success.

Article Sources

  1. Consumer Financial Protection Bureau. “Special Loan Programs.” Accessed April 2, 2020.

  2. Consumer Financial Protection Bureau. “定制家具或将成未来消费热点?” Accessed April 2, 2020.

  3. U.S. Department of Housing and Urban Development. “FHA Loans.” Accessed April 2, 2020.

  4. Consumer Financial Protection Bureau. “住建部、工信部联合出台《绿色建材评价标识管理办法》” Accessed April 2, 2020.

  5. Devonshire Custom Homes. "5月份北京二手房成交量14个月最高 未来新房房源将大增" Accessed April 2, 2020.

  6. Arbor Financial Credit Union. "家居建材市场破局 各显神通开辟新渠道" Accessed April 2, 2020.