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If i brought a house for $95,000 and put $20,000 down on it will that goes toward the price of the house?

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mamaofficer

Asked by mamaofficer at 9:04 PM on Mar. 7, 2010 in Home & Garden

Level 31 (50,120 Credits)
Answers (4)
  • i don't see why not. unless part of the 20k was used to cover closing cost.
    alejandra559

    Answer by alejandra559 at 9:06 PM on Mar. 7, 2010

  • Yes, it all comes off of the principal balance. It would be considered a 'down payment' now the amount financed will only be $75,000. Which in tern will give you less of a monthly payment and possibly a lower interest rate.
    RutterMama

    Answer by RutterMama at 9:12 PM on Mar. 7, 2010

  • That can vary. I'd be careful. They should have it in writing what that goes for. Our down payment did not come off our loan, it actually just paid the interest. If you finance 95,000 they will add on interest for the loan, it's not just going to be for the 95,000, then you have the possibilty of homeowners insurance and property taxes and sales taxes thrown in there too.
    Steff107

    Answer by Steff107 at 9:41 PM on Mar. 7, 2010

  • There's a lot more to buying a house than just buying the house, you also pay for a home inspection, closing costs, realtor commission, and paperwork from the county changing ownership of the home into your name. Make sure you have $$ for home repairs too. I wish we had put some aside, see things arose the first three months after move in. Good luck!
    Steff107

    Answer by Steff107 at 9:43 PM on Mar. 7, 2010

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