Question by Brad: What is the best way to finance a 50k house purchase?
I am thinking about buying a property for about 50k while the housing market is still low. But I only have around 20k in savings. I don’t want to use it all because most likely the property will need some repairs. So, what is the best finance strategy How much Do I or should I use for this home purchase?
$50,000 Sales Price
20% = $10,000 Downpayment
80% = 40,000 Loan
Summary: $ 10k downpayment $ 40k mortgage
There are other options requiring less down-payment but this would give you the best interest rate and monthly payment.
Get a home inspection before your purchase to make sure the home doesn’t need major repairs.
And last but not least get a fixed rate mortgage.
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