Is it better to pay off debt or have a down payment
Date: Thu, 04/02/2009 - 05:15
I am looking to buy a house to take advantage of this stimulus package. Â I have a fairly decent credit score (740) and have a decent amount saved (20k). Â Would it be more benificial to use that money to pay off the rest of my credit card debt (about 20k) or save it for a down payment on a house? Â
every case is going to be difference, but I would think the more
every case is going to be difference, but I would think the more that you can pay down on your home the better .... you'd get done paying a long term loan faster.?? Unless you have high interest rates on your credit cards?
The more you have down the better.?? FHA only requires 3.5% do
The more you have down the better.?? FHA only requires 3.5% down.?? However, you have to pay PMI.?? If you have 20% down you wouldn't have to pay PMI.?? As long as your debt to income ratio is fine, I would continue to save for the down payment on a house.
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Your total debt to income ratio should be below 41% of your gros
Your total debt to income ratio should be below 41% of your gross income. This includes your house payment. FHA guidelines require it to be below 43%.