Down Payments in the Long Beach Island Real Estate Market
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LBI Real Estate Down Payment 
LBI Real Estate Down Payment 
LBI Real Estate Down Payment
Long Beach Island Real Estate
For many buyers in the LBI real estate market, a mortgage is an integral part of the transaction. Along with the interest rate and the type of loan being considered, the down payment is among the most common questions I am asked about. Since I am a real estate agent and not a lender, I must always suggest that a buyer speaks with a lender to determine the interest rate, type, and terms of the mortgage and, of course, the down payment. That said, there are some common themes we see play out in the LBI real estate market concerning down payments, and knowing about them can make you a more effective buyer.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate Down Payment
There are three basic categories that most buyers in the LBI real estate market will fit into when considering a minimum down payment amount:
- 20% down payment
- 25% down payment
- 10%-15% down payment
A mortgage with 20% (or more) down is by far the most common mortgage we encounter in the LBI real estate market. This will usually adhere to a conforming loan’s standards and will typically offer the best interest rate. If a buyer is seeking an investment loan, in most cases, the minimum down payment will be 25% (and often, investment loans carry a higher interest rate). Some banks will offer a 20% down payment on an investment loan, but it is best to budget 25%. We encounter mortgages with less than 20% down, and these downpayment amounts will usually be either 10% down or 15% down. While the lower down payment can help a buyer take advantage of low-interest rates, it is essential to note that a mortgage with less than 20% down will often have PMI (private mortgage insurance) added to the loan’s cost.
Down Payments in the Long Beach Island Real Estate Market
As I mentioned above, I am a real estate agent and not a lender. The information I have provided is a general overview of the mortgage market on Long Beach Island. Every buyer and every borrow’s situation is unique, and as a result, you could find a very different product from what is described above. For this reason, all buyers should speak with multiple lenders so they can understand the options available to them when buying a home in the Long Beach Island, NJ real estate market. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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