When million-dollar-plus homes are purchased, do people put more than 20% down?

[Anonymous]

Otherwise, how do they handle the mortgage payment? What is the monthly payment on these million dollar homes, anyway?

[Anonymous]

Umm yes... I'm buying a 700k home with 300k down.

Try a mortgage calculator if you need help. http://www.zillow.com/mortgage-calculator/

[Anonymous]

We bought a 1.1 house with $400 down. Many others do all cash.

[Anonymous]

Wow. How do people handle that kind of monthly payment?

[Anonymous]

Anonymous wrote:Wow. How do people handle that kind of monthly payment?

They make more money than you...?

[Anonymous]

We put down 5% on 900 thanks to the VA loan

[Anonymous]

Not always. We were planning to put 10% down but got a loan that allowed us to put 5% down. My husband was nervous that the economy was going to be such that we would not be getting raises in the near future so we decided to keep the money in cash. Later, as our house value appreciated, and we felt a bit more comfortable we were able to refinance both mortgages into a single 20 yr fixed and put in more of our cash. Of course this was only done b/c we had sufficient cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wow. How do people handle that kind of monthly payment?

They make more money than you...?

LOL. How do people afford anything, OP? Either they have a lot of money (inherited or earnings) or they spend more than they have. Duh.

[Anonymous]

Anonymous wrote:Umm yes... I'm buying a 700k home with 300k down.

Try a mortgage calculator if you need help. http://www.zillow.com/mortgage-calculator/

A 700k home is not a million dollar home. Unless you mean the house is 1M and you are putting down 300k for a mortgage of 700k?

[Anonymous]

Anonymous wrote:We bought a 1.1 house with $400 down. Many others do all cash.

We did all cash for 1.5.

[Anonymous]

Many times, yes. We purchased a 1.5 million home and put down 50%.

[Anonymous]

Anonymous wrote:Not always. We were planning to put 10% down but got a loan that allowed us to put 5% down. My husband was nervous that the economy was going to be such that we would not be getting raises in the near future so we decided to keep the money in cash. Later, as our house value appreciated, and we felt a bit more comfortable we were able to refinance both mortgages into a single 20 yr fixed and put in more of our cash. Of course this was only done b/c we had sufficient cash.

I don't understand your logic. Seems like you would want to put more down to keep the mortgage payments low. We wanted to put more down so that if we went down to one salary, we could still afford the mortgage. We were able to do about 50% down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Not always. We were planning to put 10% down but got a loan that allowed us to put 5% down. My husband was nervous that the economy was going to be such that we would not be getting raises in the near future so we decided to keep the money in cash. Later, as our house value appreciated, and we felt a bit more comfortable we were able to refinance both mortgages into a single 20 yr fixed and put in more of our cash. Of course this was only done b/c we had sufficient cash.

I don't understand your logic. Seems like you would want to put more down to keep the mortgage payments low. We wanted to put more down so that if we went down to one salary, we could still afford the mortgage. We were able to do about 50% down.

Keeping money on hand is a good strategy so that you don't have to pull it out of your house.

[Anonymous]

We put 20% down on a house around that price. We had no substantial savings and it was our first SFH. Our HHI is relatively high (300 with one income) and will likely increase.

For us, the monthly payments aren't too much for us, but we just didn't have the cash to put more down than 20% at the time.

[Anonymous]

We have about $900,000 in equity in our current home. If we were to trade up, we would put all that down.