All of you real estate fence-sitters: Can We Talk?

You are continuing to save money until you have at least the “necessary 10% down.” STOP IT!

5% NOW WILL BEAT 10% Then every time in a market where prices and interest rates are rising!

Here’s what happens when you WAIT.. You get soaked!

12 people waiting to buy a home and a couple kids

Don’t believe me? Check out this math when you spend 2 years saving to get to 10% vs. the FAR SIMPLER TO ACHIEVE 5%…

10% PLAN

$400,000 purchase price.

10% Down ($40,000)

5.375% Interest Rate for 30 Years. (Hey, the rate went up during the time you were saving the $40,000).

(Above: people waiting to buy a home)

PAYMENT: $2,595/month.

Total Mortgage Cost ($934,200)

NOW… LET’S LOOK AT THE 5% PLAN:

$400,000 purchase price

5% Down ($20,000)

PAYMENT (P/I Only) $2,428/month.

Total Mortgage Cost ($874,080)

So… by only doing 5% down NOW ….. your payment per month is actually LESS than if you wait, and your mortgage costs less after 30 years. That’s interest rates for you… They are cruel. And this assumes the price of that home stays the same for the next 2 years… Good luck with that!!

This is nearly as good as saving for 20% down. At 20% down, with the higher 5.675% interest rate, your payment is $20/month less and you save only $8,000. Of course, the house you wanted was bought 5 years earlier by the 5% down buyer.

This infographic shows you don’t need an 800 FICO, and 20% or even 10% down.. Look at what’s REALLY needed to buy.


Talk to a lender about a pre-approval TOMORROW. You can’t today, because you have to weed the garden, cook dinner, feed the kids, etc. etc… Yeah yeah….

TOMORROW. Please, it’s for your own good.