PROs And CONs Of 5% vs 20% down payment on real estate

In this video, Doug Reynolds and I discuss the pros and cons of a 5 percent down vs a 20 percent down payment. You cant listen to advice from 25 years ago when things have changed drastically in mortgage and maybe considering a smaller down payment is a good financial decision for some.

I love real estate and everything that has to do with real estate investing mortgage, and general finance. If you enjoyed this video and found value, please consider subscribing!

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✔More of Doug Reynolds:😍
✔A Full-time realtor with more than 14 years of sales.
✔Sold over 300 homes across Sacramento, Placer, Yolo, and El Dorado Counties.
✔Masters Club Member 2011-2020 (Top 10% of Sacramento Area Realtors) –
✔Sacramento Association of Realtors Gold Award winner (Top 5% Nationwide) –
✔Better Homes & Gardens Real Estate 78% of his business comes from referrals and repeat clients
✔ Business Degree in “Real Estate and Land Use Affairs”– CSU, Sacramento 2006 Graduate
✔ Full Team of professional associates and vendors to lead his sellers and buyers successfully through the entire process while meeting their needs and expectations.
💖 A loving husband to an amazing wife and a father to two beautiful girls
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[ladytracy]

This is exactly what I wanted to hear very informative thank you you made up my mind I originally was thinking of putting 20% down but when u broke it down the way you did it makes perfect since to just put less its a tax right off anyways I get some back win win for me and I’m not totally broke 😁

[gustavogomez]

Something tells me this is what a lender would say. A lender might prefer for you to pay interest with a lower down payment. It is like buying a car, some salesmen don't want you to pay in full but to me it makes sense unless you can't afford to do a 20% down. His first point on that was good but some home improvements can wait.

[TheAnonymous]

Are PMI really that low though? What would you say the PMI average/estimate would be for someone with a 750 credit score planning to buy a $660k home in Sacramento? I'm debating if I should save up for 20% down, or take a shot at 10-15%, and have money left over for emergencies. If PMI is really as low as you say, I wouldn't mind paying an extra $100 or so.

[ReynoldsRealEstate]

Great info Matt! I always enjoy collaborating with you amigo.

[BenM]

Lender wants you to borrow more. Shocker.

[akila]

So if the interest rates are high, it’s better to put a bigger downpayment 20% or a little more. I’m down here in San Diego ‘bout to purchase a New Construction home.

[stevej]

Another great collaboration vid. Super informative!! Thanks for great & honest advice.

[abcxyz]

This is a really good video specially for first time home buyers. However there is one small problem with 5% down. Sometimes buyers reject the offers only based on how much cash component you add to the offer.

[larynOneka]

This video was not helpful at all. I have enough to put 20% down and have 2 years of mortgage payments in the bank. This video is only helpful to people who don't have enough money to out 20% down.

[hkawnsanhpauwung]

Hi Matt, we bought a 100 year old house in Roseville. We thought it would be just a light fixer but turn out we need major remodel. We are also thinking of putting some addition to be comparable with neighborhood.Can you help us with cash out refinancing or construction loan?