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papercutninja t1_j8pnhj2 wrote

Reply to comment by leostotch in Apple Pay Later nears launch, company will use past spending with Apple to evaluate creditworthiness. by SUPRVLLAN

That’s half the down payment (20%) on the average new home purchase as of this year.

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leostotch t1_j8po6iv wrote

20% down isn’t really standard anymore, though.

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papercutninja t1_j8pp27j wrote

Look at that, it used to be 20%. Now it’s anywhere around 3-7%.

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leostotch t1_j8pqhk0 wrote

Yeah. Up for discussion whether that’s a good thing or not, but I was just as surprised.

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SlowMotionPanic t1_j8rb3zt wrote

A sad state of our economic situation unfortunately. People will be paying high cost, no benefit (for them) mortgage insurance in lieu of that full down payment for at least 10 years. Considering the average lower premium these days (given prices) is around $1,500/yr that shit really adds up once one realizes they still need property insurance and taxes paid.

I’ve seen many people in my life get excited for an FHA loan since they can afford the tiny down payment, only to realize they can’t actually afford the true full cost because of PMI + escrow.

But if it helps escape being locked in renting then it almost always makes sense.

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SirMaster t1_j8puob3 wrote

Huh?

The average home price is like 350K, so it's 100% of a 20% down payment.

But I would do a smaller down payment personally. I can make a way higher return on the cash than the mortgage rates even at current rates.

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papercutninja t1_j8pv7b4 wrote

$350k is average on home purchases, not new home purchases.

In other words, newly built homes, not new-to-you homes.

And it seems my Google ignored my query of “Average cost of new home purchases in the US” and instead just gave me Idaho homes.

My b everyone.

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