Are you looking to purchase a home in Katy, Texas but unsure of the best financing options available to you? One option to consider is a 20% down payment mortgage. By putting down 20% of the purchase price upfront, you can potentially save money in the long run by avoiding costly private mortgage insurance (PMI) payments.

Katy, Texas is a popular location for homebuyers due to its excellent schools, family-friendly communities, and convenient access to major highways. Securing a mortgage in Katy can be made easier with the help of Katy Texas loans and Katy mortgage lenders who specialize in helping local residents achieve their homeownership dreams.

By putting down 20% on a Katy Texas house loan, you can also potentially qualify for a lower interest rate, resulting in significant savings over the life of your mortgage. Additionally, having a larger down payment can make you a more attractive borrower to lenders, increasing your chances of approval for a loan.

When considering a 20% down payment mortgage in Katy, it’s essential to work with a reputable lender who understands the unique market conditions in the area. By partnering with a Katy mortgage specialist, you can receive personalized guidance and support throughout the homebuying process, ensuring that you secure the best loan for your specific needs.

In conclusion, if you’re in the market for a home in Katy, Texas, consider exploring the benefits of a 20% down payment mortgage. With the help of Katy Texas loans and experienced mortgage lenders, you can make your homeownership dreams a reality in this vibrant and thriving community.

Thinking of selling your house and moving? It’s worth considering if you want to put 20% down on your next home.

While that typically isn’t required, putting that much down has clear advantages – and the equity you’ve built up in your current home can help make it possible.

DM me today for a professional equity assessment and to discuss how you can use your equity to fuel your next move.

downpayment #makememove #keepingcurrentmatters

The Benefits of Using Your Equity To Make a Bigger Down Payment

Did you know? Homeowners are often able to put more money down when they buy their next home. That’s because, once they sell, they can use the equity they have in their current house toward their next down payment. And it’s why as home equity reaches a new height, the median down payment has too.

According to the latest data from Redfin, the typical down payment for U.S. homebuyers is $67,500—that’s nearly 15% more than last year, and the highest on record (see graph below):

Here’s why equity makes this possible. Over the past five years, home prices have increased significantly, which has led to a big boost in equity for current homeowners like you. When you sell your house and move, you can take the equity that gives you and apply it toward a larger down payment on your new home. That’s a major opportunity, especially if you’ve had concerns about affordability.

Now, it’s important to remember you don’t have to make a big down payment to buy your next home—there are loan programs that let you put as little as 3%, or even 0% down. But there’s a reason so many current homeowners are opting to put more money down. That’s because it comes with some serious perks.

Why a Bigger Down Payment Can Be a Game Changer

1. You’ll Borrow Less and Save More in the Long Run

When you use your equity to make a bigger down payment on your next home, you won’t have to borrow as much. And the less you borrow, the less you’ll pay in interest over the life of your loan. That’s money saved in your pocket for years to come.

2. You Could Get a Lower Mortgage Rate

Providing a larger down payment shows your lender you’re more financially stable and not a large credit risk. The more confident your lender is in your credit score and your ability to pay your loan, the lower the mortgage rate they’ll likely be willing to give you. And that amplifies your savings.

3. Your Monthly Payments Could Be Lower

A bigger down payment doesn’t just help you reduce how much you have to borrow—it also means your monthly mortgage payment may be smaller. That can make your next home more affordable and give you a bit more breathing room in your budget.

4. You Can Skip Private Mortgage Insurance (PMI)

If you can put down 20% or more, you can avoid Private Mortgage Insurance (PMI), which is an added cost many buyers have to pay if their down payment isn’t as large. Freddie Mac explains it like this:

“For homeowners who put less than 20% down, Private Mortgage Insurance or PMI is an added insurance policy for homeowners that protects the lender if you are unable to pay your mortgage. It is not the same thing as homeowner’s insurance. It’s a monthly fee, rolled into your mortgage payment, that’s required if you make a down payment less than 20%.”

Avoiding PMI means you’ll have one less expense to worry about each month, which is a nice bonus.

Bottom Line

Down payments are at a record high, largely because recent equity gains are putting homeowners in a position to put more money down.

If you’re thinking about selling your current house and moving, let’s work together to figure out how much home equity you have right now, and how it can boost your buying power in today’s market.