Buying a New Phoenix AZ Home? How Much Money Should Be Put Down?

By Tony Marriott • March 20th, 2010

Buying a new Phoenix AZ home is a big step, and an expensive one at that.  After qualifying for a loan, locating a home and going under contract there are many questions to be answered regarding financing your new home.  One such question is how much money should be put down.  If you can afford to put down more than 20%, should you?
There are a lot of questions that come up regarding money when financing a new home
When purchasing a new Arizona home it can be beneficial to put down as little money as possible.  Having cash left over in your bank account can mean extra money for home improvements.  Less money down enables Arizona homeowners to maximize the tax benefits that come along with home ownership.  Mortgage interest and property taxes are deductible from a person’s state and federal income taxes.

On the flip side, paying more up front can save quite a lot of money over time by reducing the initial debt and therefore saving on interest payments.  Evaluating what makes more sense in your particular situation is a smart way to go.  Either way you will save, money on taxes or money on interest.  Of course not everyone has the extra money to ponder this dilemma, but if you do, having this choice can be good.

Tony Marriott, a Phoenix area realtor, can help you search for Phoenix homes for sale and help guide you on the best mortgage for you.  The Tony Marriott Team can be contacted at 602-445-6299 or by email for more Phoenix AZ real estate questions.

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