Is It Vital To Have A Down Payment When Purchasing A House?

Is it vital to have a down payment when purchasing a house? It's probably better to go in and get loan with a minimal amount of cash than to wait a couple of years and try to save it up. It's probably better...

It's probably better to go in and get loan with a minimal amount of cash than to wait a couple of years and try to save it up because you are going to get some tax benefits. Let's just say you are paying $1000 a month in rent if you were to convert say $800 a month towards your mortgage payment and $200 for maintenance or something, almost all of that $800 a month is going to be interest and that will reduce your taxable income. So you don't have to pay as much in tax. Plus the longer you are in the house, the more equity you build up. Hopefully you've found a good neighborhood were people are trying to get in and so they are going to raise the values and you are paying off your loans so you are getting in more of a money position. It's really hard for young people today to save up a down payment of $20,000. You might be better off jumping in and buying.

© High Speed Ventures 2011