If you calculate all the costs you have to do before getting the keys to the home you dream of, you may feel like you are facing a mountain of obligations that are difficult to climb. And it’s true that there are significant challenges in the financial year of buying a home, starting the down payment and finishing the costs of the home. closing or closing of the operation.
But that mountain is not as high as you may think.
To begin with, because it is not necessary to pay 20% of the price of the house as an initial payment or down payment to get a mortgage.
Rocket Mortgage®, the US leader in loans for home purchases, offers several types of mortgages for which you can qualify with as little as 3%, 3.5% and even in one particular case, with no down payment at all. These are conventional mortgages, FHA, and VA loans for qualifying military service members, veterans, and eligible widows and widowers, respectively. In its online service or with the agents of this mortgage company you will see the possibility that best suits your personal circumstances.
With Rocket Mortgage’s mortgage calculator has a necessary tool to get an idea of what would be the best down payment calculation and the resulting monthly installments for your particular case.
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It is true that when you contribute more initially there are fewer long-term interest costs and you have more equity in your home, among other advantages. However, a smaller check for this first step opens the doors to purchasing opportunities when they present themselves or when needed, for example, when a couple becomes a family of four and the home they live in only fits the couple. .
They are initial payments that do not indefinitely delay the possibility of getting the home you want and need. In addition, it allows part of the funds you have to be used for renovations, repairs or emergencies.
And there is help to face these costs. With the ONE+ offer, Rocket Mortgage contributes 2% of the price so that the buyer, with income similar to or below 80% of the minimum income in their area, only takes care of the remaining 1% to reach the minimum. In addition, Private Mortgage Insurance (PMI) is eliminated.
If this is your case, and you would like to get, for example, a home with a price of $350,000 dollars, you would have to contribute $3,500 dollars (1%) as a down payment instead of $10,500 dollars (3%). You would also save monthly PMI of approximately $340 per month. The latter is something that in five years would mean savings of $20,400 dollars.
From this perspective the mountain that was seen at the beginning is much less imposing. Easier.
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This mortgage company also has two initiatives underway to facilitate financing with cash aid through programs BorrowSmart and Purchase Plus offered in some cities. With them, buyers can obtain credits for a maximum of $3,000 or $7,500 dollars.
The other checks that give height to this purchase challenge are the closing or closing, the moment when you are closest to the top, that is, to getting the keys, because it is also when you have to pay the costs associated with the loan and the property title.
These costs depend on the type of mortgage that has been granted and also influences where the house is located. They are normally equivalent to a figure that is between 3% and 6% of the mortgage loan.
But the peak of this mountain can be lowered again.
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It is the opportunity that the offer provides BUY+. When you work with Rocket Homes to purchase a home and use Rocket Mortgage to finance it you can get up to $10,000 in closing money. By working with both you can simplify the purchasing process and save thousands of dollars.
If you are selling yours to buy a new one SELL+ Allows you to receive up to $7,000 from Rocket Homes after closing for working with an agent from this firm. This is an offer that can be combined with BUY+ to save on both transactions.
It is not necessary to pay more or climb very high mountains. Save. And from the top, breathe.
More information in rocketmortgage.com!
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