You want to buy a house in Atlanta? Do you know how much you need for a down payment?

You want to buy a house in Atlanta? Do you know how much you need for a down payment?

When you are saving money to buy your first home, it can be daunting to think about the amount of money you need to save to become a first time home owner. While there are loans that require only 3.5% down payment which is insured by the FHA (Federal Housing Administration), these loans require you to have mortgage  insurance for the duration of the mortgage, this makes monthly mortgage payments higher.

Most banks make mortgage loans with a down payment of 10% or 20%, although there are some lenders who offer conventional loans that require only 5% initial down payment. For those types of loans, we advised to consult with your  lender to see what is the best option is for you and also to find out what are the advantages and disadvantages of each of these loans.

Why 20% is an ideal lenders loan?

Atlanta homes for sale

Atlanta homes for sale

Mortgage lenders evaluate your credit profile, your debt ratio to income, work history and how much you have saved to confirm if you are a person who could make monthly mortgage payments without problems. 20% down is considered an ideal amount by the lenders because you are investing a significant amount of your own money and making the lender risk is minimal. When buying a house with 20% down, you will have a lower monthly payment and will not pay for the loan insurance PMI (private mortgage insurance)

Advantages and disadvantages of putting 20% ​​down

  • Besides eliminating the need for PMI, by putting 20% down payment, it will be easier to qualify for the mortgage loan and the interest rate will be lower as well.
  • The other benefit is that you will have to burrow less money and therefore your monthly payments will be lower.
  • In addition, you will own 20% of the value of your home, giving you the ability to get a home equity loan from another bank for an amount equal to 20%

On the other hand, getting 20% down payment to buy a home of about $ 200,000 is $ 40,000, this may take many years to save this amount, Keep in mind, when buying a house you will also need money for other expenses such as; closing costs, prepaid taxes, moving expenses and an emergency fund. It is also possible that while you are saving money for the down payment, house prices and interest rate  may go up.

Advantages and disadvantages of a lower down payment.

If you buy a home with a down payment of 10%, a house of about $ 200,000, will require a $20,000 down payment. if you buy the house with a 5% down payment, the amount will be about $ 10,000, using a smaller down payment will allow you to become a home owner sooner. You can get your home faster because you don’t have to have as much money. It is recommended to save a little more to avoid problems in case of an emergency or other arrangements such as maintenance and repairs.

The disadvantages of a smaller down payment is; you will have to pay PMI to your lender, thus making you monthly payments higher . Your mortgage interest rate will be higher, so your monthly payments will be larger, too.

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Telmo Bermeo Real Estate Broker

About Telmo Bermeo

Small Business Owner, specializes in marketing homes for sale in the Atlanta Area by using the most up to date Internet Marketing Tools.

Real Estate Broker serving the Atlanta Metro Area, for over 12 years. If you are planning to buy or sell your home in Atlanta, call Telmo Bermeo at 770-309-6417

Atlanta Real Estate

Here is the Top Real Estate Markets in Georgia

Atlanta Homes for Sale | Alpharetta Homes for Sale | Marietta Homes for Sale | Sandy Springs Homes for Sale | Decatur Homes for Sale Roswell Homes for Sale Lawrenceville Homes for Sale | Kennesaw homes for sale

Atlanta Homes for Sale

$1,350,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
822 Argonne Avenue NE
Atlanta, GA 30308
Midtown Subdivision
$1,795,000
Single Family Home For Sale
Active
5
BED
6
TOTAL BATHS
5,247
SQFT
775 Amsterdam Avenue NE
Atlanta, GA 30306
Morningside Subdivision
$1,995,000
Single Family Home For Sale
Pending
5
BED
6
TOTAL BATHS
3,690
SQFT
756 Ponce De Leon Terrace NE
Atlanta, GA 30306
Virginia Highlands Subdivision
$3,800,000
Single Family Home For Sale
Active
5
BED
6
TOTAL BATHS
6,278
SQFT
230 Peachtree Circle NE
Atlanta, GA 30309
Ansley Park Subdivision
New Listing - 2 weeks online
$1,795,000
Single Family Home For Sale
Active
5
BED
7
TOTAL BATHS
4,794
SQFT
876 Barnett Street NE
Atlanta, GA 30306
Virginia Highlands Subdivision
$1,700,000
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,500
SQFT
1333 Berwick Avenue NE
Atlanta, GA 30306
Morningside Subdivision
$1,895,000
Single Family Home For Sale
Active
5
BED
6
TOTAL BATHS
4,728
SQFT
941 Virginia Avenue NE
Atlanta, GA 30306
Virginia Highlands Subdivision
$1,699,900
Single Family Home For Sale
Active
6
BED
7
TOTAL BATHS
4,550
SQFT
931 Courtenay Drive NE
Atlanta, GA 30306
Morningside Subdivision
$895,000
Single Family Home For Sale
Active
4
BED
6
TOTAL BATHS
3,600
SQFT
482 Parkway Drive NE
Atlanta, GA 30308
Old Fourth Ward Subdivision
New Listing - 3 weeks online
$1,849,000
Single Family Home For Sale
Pending
5
BED
6
TOTAL BATHS
4,405
SQFT
1429 Wessyngton Road NE
Atlanta, GA 30306
Morningside Subdivision
$2,120,000
Single Family Home For Sale
Pending
6
BED
5
TOTAL BATHS
5,152
SQFT
1433 Wessyngton Road NE
Atlanta, GA 30306
Morningside Subdivision
$1,710,300
Single Family Home For Sale
Active
4
BED
5
TOTAL BATHS
7 Brattle Drive NE
Atlanta, GA 30324
Morningside Subdivision
$1,835,600
Single Family Home For Sale
Active
4
BED
5
TOTAL BATHS
9 Brattle Drive NE
Atlanta, GA 30324
Morningside Subdivision
$1,760,000
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
8 Brattle Drive NE
Atlanta, GA 30324
Morningside Subdivision
$2,350,000
Single Family Home For Sale
Active
6
BED
6
TOTAL BATHS
6,592
SQFT
1742 Pine Ridge Drive NE
Atlanta, GA 30324
Morningside Subdivision
New Listing - 2 weeks online
$1,975,000
Single Family Home For Sale
Active
6
BED
7
TOTAL BATHS
10,000
SQFT
1871 Windemere Drive NE
Atlanta, GA 30324
MORNINGSIDE Subdivision
New Listing - a week online
$1,975,000
Single Family Home For Sale
Active
6
BED
7
TOTAL BATHS
10,000
SQFT
1875 Windemere Drive NE
Atlanta, GA 30324
Morningside Subdivision
$1,289,999
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
4,500
SQFT
1254 Stillwood Drive NE
Atlanta, GA 30306
Virginia Highlands Subdivision
$1,350,000
Single Family Home For Sale
Active
4
BED
5
TOTAL BATHS
2,931
SQFT
1261 Virginia Avenue NE
Atlanta, GA 30306
Ardyn Subdivision
New Listing - 2 weeks online
$1,699,000
Single Family Home For Sale
Active
6
BED
6
TOTAL BATHS
5,129
SQFT
1231 Reeder Circle NE
Atlanta, GA 30306
Morningside Subdivision
New Listing - 3 weeks online
$749,900
Single Family Home For Sale
Pending
4
BED
4
TOTAL BATHS
2,033
SQFT
171 Randolph Street NE
Atlanta, GA 30312
Old Fourth Ward Subdivision
$2,495,000
Single Family Home For Sale
Active
6
BED
7
TOTAL BATHS
5,800
SQFT
1731 Wildwood Road NE
Atlanta, GA 30306
Morningside Subdivision
New Listing - 4 days online
$1,299,900
Single Family Home For Sale
Active
6
BED
5
TOTAL BATHS
3,268
SQFT
1054 Euclid Avenue NE
Atlanta, GA 30307
Inman Park Subdivision
New Listing - 4 weeks online
$539,900
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,590
SQFT
19 Daniel Street SE
Atlanta, GA 30312
Old Fourth Ward Subdivision
$1,235,000
Single Family Home For Sale
Pending
6
BED
5
TOTAL BATHS
3,146
SQFT
216 Haralson Lane NE
Atlanta, GA 30307
Inman Park Subdivision
$875,000
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,440
SQFT
54 Boulevard SE
Atlanta, GA 30312
Old Fourth Ward Subdivision
New Listing - 4 days online
$1,377,000
Single Family Home For Sale
Active
6
BED
5
TOTAL BATHS
4,500
SQFT
1377 Briarcliff Road NE
Atlanta, GA 30306
Druid Hills Subdivision
New Listing - 2 weeks online
$1,495,000
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,534
SQFT
2048 Fairhaven Circle NE
Atlanta, GA 30305
Peachtree Hills Subdivision
New Listing - 2 weeks online
$1,895,000
Single Family Home For Sale
Active
5
BED
6
TOTAL BATHS
5,844
SQFT
1783 Noble Drive NE
Atlanta, GA 30306
Morningside Subdivision
New Listing - 3 weeks online
$875,000
Single Family Home For Sale
Active
4
BED
5
TOTAL BATHS
2,800
SQFT
294 Ferguson Street
Atlanta, GA 30307
Candler Park Subdivision
New Listing - 3 weeks online
$925,000
Single Family Home For Sale
Active
4
BED
5
TOTAL BATHS
2,800
SQFT
292 Ferguson Street
Atlanta, GA 30307
Candler Park Subdivision
New Listing - 6 days online
$875,000
Single Family Home For Sale
Active Under Contract
5
BED
5
TOTAL BATHS
3,603
SQFT
1104 Palafox Drive NE
Atlanta, GA 30324
Woodland Hills Subdivision
$850,000
Single Family Home For Sale
Pending
4
BED
4
TOTAL BATHS
2,592
SQFT
174 Pearl Street SE
Atlanta, GA 30316
Reynoldstown Subdivision
$669,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,205
SQFT
1322 Boyd Avenue
Atlanta, GA 30318
Westtown Subdivision
New Listing - 4 days online
$850,000
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
834 Harold Avenue SE
Atlanta, GA 30316
Reynoldstown Subdivision
$699,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,608
SQFT
1316 Boyd Avenue
Atlanta, GA 30318
Westtown Subdivision
$669,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,205
SQFT
1310 Boyd Avenue
Atlanta, GA 30318
Westtown Subdivision
$699,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,608
SQFT
1318 Boyd Avenue
Atlanta, GA 30318
Westtown Subdivision
$748,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,467
SQFT
1136 Boulevard Drive NE
Atlanta, GA 30317
Reynoldstown Subdivision
New Listing - 3 weeks online
$592,990
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,032
SQFT
513 Broadview Place NE
Atlanta, GA 30324
Broadview Place Subdivision
New Listing - 3 weeks online
$639,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,539
SQFT
509 Broadview Place NE
Atlanta, GA 30324
Broadview Place Subdivision
New Listing - 3 weeks online
$573,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,032
SQFT
507 Broadview Place NE
Atlanta, GA 30324
Broadview Place Subdivision
New Listing - a week online
$560,000
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,083
SQFT
1223 Hardee Street
Atlanta, GA 30307
Oxley Edgewood Subdivision
New Listing - 3 weeks online
$611,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,502
SQFT
516 Broadview Lane NE
Atlanta, GA 30324
Broadview Place Subdivision
Price Change - 4 weeks ago
$875,000
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
3,200
SQFT
1356 Woodland Hills Drive NE
Atlanta, GA 30324
Woodland Hills Subdivision
$618,100
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,914
SQFT
614 Broadview Terrace NE
Atlanta, GA 30324
Broadview Place Subdivision
New Listing - 3 weeks online
$654,900
Single Family Home For Sale
Pending
4
BED
5
TOTAL BATHS
2,685
SQFT
625 Broadview Terrace NE
Atlanta, GA 30324
Broadview Place Subdivision
New Listing - 3 weeks online
$589,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,048
SQFT
621 Broadview Terrace NE
Atlanta, GA 30324
Broadview Place Subdivision
Price Change - 4 days ago
$735,000
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,720
SQFT
1214 Hosea L. Williams Drive
Atlanta, GA 30317
Edgewood Subdivision
Price Change - 3 weeks ago
$629,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,505
SQFT
579 Broadview Place NE
Atlanta, GA 30324
Broadview Place Subdivision
New Listing - 3 weeks online
$564,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,048
SQFT
603 Broadview Terrace NE
Atlanta, GA 30324
Broadview Place Subdivision
New Listing - 3 weeks online
$572,900
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,074
SQFT
576 Broadview Place NE
Atlanta, GA 30324
Broadview Place Subdivision
$615,326
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,053
SQFT
627 Broadview Terrace NE
Atlanta, GA 30324
Broadview Place Subdivision
New Listing - 2 weeks online
$569,900
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,850
SQFT
578 Broadview Place NE
Atlanta, GA 30324
Broadview Place Terrace Subdivision
New Listing - 3 weeks online
$574,900
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
2,016
SQFT
580 Broadview Place NE
Atlanta, GA 30324
Broadview Place Subdivision
$825,000
Single Family Home For Sale
Pending
5
BED
4
TOTAL BATHS
3,103
SQFT
1053 Briar Vista Terrace NE
Atlanta, GA 30324
Woodland Hills Subdivision
New Listing - 8 hours online
$1,325,000
Single Family Home For Sale
Active
5
BED
6
TOTAL BATHS
5,486
SQFT
1107 Country Lane NE
Atlanta, GA 30324
Woodland Hills Subdivision
Price Change - 2 weeks ago
$709,441
Single Family Home For Sale
Active
4
BED
6
TOTAL BATHS
3,342
SQFT
916 Luther Street NW
Atlanta, GA 30318
Westtown Subdivision
Price Change - 2 weeks ago
$720,289
Single Family Home For Sale
Active
4
BED
6
TOTAL BATHS
3,342
SQFT
912 Luther Street NW
Atlanta, GA 30318
Westtown Subdivision
Price Change - 2 weeks ago
$724,954
Single Family Home For Sale
Active
4
BED
6
TOTAL BATHS
3,342
SQFT
911 King Street NW
Atlanta, GA 30318
Westtown Subdivision

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