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The down payment portion of the cash required to close on a home purchase is your upfront portion of the purchase personal loans in villa rica ga. The amount of the down payment can range from 3. 5 percent of the home price for an FHA-financed purchased to more than 20 percent. The down payment amount becomes your equity in the home. For example, if the home costs 200,000 and you put 10 percent or 20,000 down, the initial loan amount will be 180,000.
The difference between the loan balance and the home value is the owner's equity. Mortgage Expenses. Obtaining a mortgage loan incurs a list of expenses that must be paid at closing.
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