How Much is a 20-percent Down Payment on a Median-Priced Home in Irvine, CA?
As of June 27, 2018, Trulia reports that a median-sales price for a home in Irvine, CA is $839,000. That means a 20% down payment would be $167,800. Keep reading to learn why yours could be a lot smaller than that.
Qualified borrowers don’t necessarily need to come in with a 20% down payment when buying to purchase a home. Nevertheless, many home buyers decide to do that because it lets them avoid the additional expense of mortgage insurance.
In most cases, mortgage insurance is required whenever the property’s loan-to-value (LTV) is more than 80%. This is a monthly or annual expenses paid by the borrower. That’s the reason why some Irvine home buyers prefer to make a 20% down payment or more when buying a home or condo. However, not everyone can afford that much of a down payment in Orange County.
Then again, if you’re able to make a 20% down payment on a home in Irvine, what would the monthly payments be? How much would it be if you paid less than 20% on a home in Orange County? By knowing this, it gives you a starting point and a plan to get there
Down Payment for a Median-Priced Home in Irvine
As of July 2018, the median sales price in Irvine was around $839,000. The following is what the down payment might look like for this price range, based on different jumbo mortgage programs and investment tiers.
Using the median home price of $839,000:
A 20% down payment would be $167,800.
A 10% down payment (loan without MI; but MI is built into the rate) would be $83,900.
A 15% down payment (MI is built into the rate) would be $125,850.
That gives you some idea of what the average down payment might be in tech center hub in Orange County, for various financing options. Needless to say, a lower or higher home price would lead to a smaller or larger down payment.
How to Minimize Your Initial Investment
Additional ways to lessen the amount of your down payment when buying in Irvine and adjacent Orange County cities:
You could simply pay the cost of mortgage insurance and get a home loan program with a low rate and low down-payment requirement.
You can use gift money from a family member or close friend.
Both of these methods can lower your initial investment. So don’t let the median or average down payment for Irvine, CA deter you from purchasing a home. These days, there’s a lot of options with regards to mortgage financing. Getting a mortgage is as not as difficult as borrowers may think.
Home Values Still Rising Steadily
According to recent real estate data by Zillow as of July 2018, home prices in Irvine have risen by 6% the last year. The real estate data provider’s trend shows no slowdown in sight as home prices are predicted to rise by 10% in 2019.
