Based in Mexico City, Ana Lorena Mendoza Hinojosa serves as a financial and heritage advisor with Creditario Domus. Certified by the Mexican Association of Broker Mortgages, Ana Lorena Mendoza Hinojosa advises clients on real estate and mortgage matters.
When purchasing a home, you’ll need to determine how much you can afford to put toward a down payment. A down payment represents a portion of a home’s purchase price that you must pay upfront. The amount of your down payment will help a lender to figure out how much to lend to you in order to cover the rest of the costs and which mortgage is most suitable for your needs. Typically, a down payment ranges from 10% to 35% of a property’s total value.
For instance, if you purchase a home for $100,000 and put down $10,000, the mortgage would be $90,000. Thus, your down payment would be 10 percent.
A higher down payment will result in a lower monthly mortgage payment. Generally, experts suggest obtaining a 15-year mortgage loan.
When determining how much you are able to put toward a down payment, it is important to consider your financial situation. People seeking predictable payments often find that a fixed-rate mortgage is most suitable for their circumstances.
