Best Mortgage Rate - Is it good to Pay a Larger Down cost on Your Home?

With all the homeowners these days before being on their mortgages it is very hard to get the best mortgage rate on a new home because lenders have become very frigid and very correct about lending money because of what happened at the home mortgage crisis. There are however a few citizen out there that decided to go against the crowd and saying quite a large nest egg of cash and they have it laying on the sideline waiting to buy a new home. Would it be wise for them to put between 40% and 50% down on a house to get the best mortgage rate? There are a few things that they would need to reconsider first before going straight through with such a large move.

The first thing to reconsider is do they have adequate of an urgency fund to get them straight through the first year on top of this large down payment?

Mortgage

The second thing to reconsider is either you have just gotten married or have you been married for quite some time and have a large family with many kids. If you are a newly married consolidate and have adequate money for a large down payment on a house, chances are you have a good opening of getting straight through your first year and if you have the expenses of many children.

The third thing to reconsider is either you intend to buy that home as an investment or plan on living there for a long time. Right now there aren't too many great investments out there in the housing manufactures and virtually every home you buy will be going down for at least the next 6 to 9 months. This is why a large down payment is best for person who plans to ride out the current home mortgage crisis.

There will be many mortgage brokers that will recommend against putting down a large down payment on a house as they will say this investment becomes dead money, but these are the same brokers that have been telling their clients that they should be refinancing as much gas as they can on their home and we have all seen where this custom has led us to. A large ration of homeowners who bought into a low down payment or no down payment deal now wish they would've put a larger amount of money down.

Before development any investment in a home you should always consult your investment advisor as they are the true experts.

Best Mortgage Rate - Is it good to Pay a Larger Down cost on Your Home?