• Skip to main content
  • Skip to footer

Springs Bargains

Colorado Springs Events, Deals, and Cheap Things to Do

Circa Real Estate Group
  • About
    • Contact Us
  • Things To Do
    • Free & Cheap Things To Do
    • Grand Openings
    • Summer Fun
  • Shopping
    • Thrift/Discount Store Directory
    • Farmers Markets & CSAs
    • Groceries
      • Coupon Policies & FAQ
  • Dining
    • Kids Eat Free Nights
  • Real Estate

Ask A Realtor: Buy Now Or Wait To Save A Larger Down Payment?

Published May 9, 2013 by Jeremy in Real Estate

Bianca writes:

My husband and I are a young couple with a child. We are thinking about buying our first home. We currently rent a condo for $850 monthly. We have no credit card debt, we do have car loans but don’t owe much. We have good credit and $8000 saved up for a down payment.

Would this be the best time to buy a home? Or should we wait 1 year to get a bigger down payment (we should have about $25,000 by then) in your opinion will the interest rates rise enough in the next few months that a bigger down payment wont make much difference?

Thanks for the question.  There tends to be a significant benefit to having at least 5% set aside as a down payment, so the answer to your question depends on how much you’re planning to spend on a home.  8k would be sufficient to purchase $160k home… If you can save just a little more, $10k works well for $200k purchase.  (There are options with even less than 5% down, they just aren’t as attractive.)

Obviously, a larger down payment is great, but unless you have a full 20% to put down the benefit is fairly negligible.  Regarding interest rates, they’re amazing right now, and I’m leery to project what they’ll be in the future.  I tend to think they’ll go up slowly over the next couple years, but we just don’t know.  One thing that I can say definitively though, is that prices are going up quite quickly right now, so if that trend continues you’d be better off buying this year.  Frankly, I’m more concerned that prices will rise over the next 6-12 months than I am that interest rates will change significantly.

– Jeremy

Jeremy Isaac is a local Realtor, but you probably know him better as Carrie’s husband.  Do you have a real estate question you’d like answered? Email Jeremy directly at jeremy@thecircagroup.com.

You can search the Colorado Springs MLS on Jeremy’s website, with no registration required to view homes, prices, addresses, or any other information. If you’re looking to sell your home, be sure to view his marketing portfolio and see how the use of HDR photography, professional video, and more will help your home sell for top dollar!

Don’t miss out! Get deals like this via email:
Please wait...
Please enter all required fields Click to hide
Correct invalid entries Click to hide
More Real Estate

Ask A Realtor: Overpriced Houses

Ask A Realtor: Does It Hurt To Make Low Offers on Houses?

Ask A Realtor: Flooring Options for Resale

Ask A Realtor: Is It Better To Sell A House Vacant or Occupied?

Welcome to Springs Bargains, a service of our real estate business, Circa Real Estate Group! I’m Carrie, and since 2008 I’ve been sharing free and discounted ways to eat, play, and enjoy life in Colorado Springs.

Sale Pending ◇ $590,000

Sold in 3 Days ◇ $325,000

Sold in 2 Days ◇ $429,900

Sold in 2 Days ◇ $515,900

Circa Real Estate Team Members

Comments are closed because this post is older than 14 days.

Filed Under: Real Estate Tagged With: Ask A Realtor

Footer

Sell Your Home
Buy A Home
Build A Home

Copyright 2008 - 2022 Springs Bargains

a service of Circa Real Estate Group

Terms of Use | Privary Policy | Disclosure

Equal Housing Opportunity

Contact Springs Bargains

Subscribe for free