Click here to view online with images.

April 2019


Whether you are looking to buy or sell, I can offer the highest levels in real estate expertise and professionalism. Don’t hesitate to contact me and allow me to help guide you through that process!

Tamrah Pedrotti
Real Estate Salesperson   |   C: 315.506.0450 / Ofc: 315.218.7171

Visit me on FacebookVisit me on TwitterVisit me on LinkedInVisit me on InstagramVisit me on Pinterest



What to Expect with Low Down Payment Loans

A down payment is your offer to share the risk of financing your home with the lender by putting your own money toward the purchase.

Fortunately, there are programs that allow low down - payments, but be prepared for some caveats. These loans are available only on primary residences, not investment properties or second homes, and they come with higher costs in your monthly payments.

The typical down payment to get the best interest rate and avoid mortgage insurance is 20% of the purchase price of the home. Anything less means the lender and guarantor such as FHA, VA or Fannie Mae, must ameliorate the added risk some way or another. So, what can you expect?

Expect to pay higher interest rates. Mortgage interest rates are variable, according to where you live, your credit, terms, and the amount of your down-payment. A low down-payment will result in a higher rate unless it can be offset by excellent credit or some other factor.

Expect to pay PMI. Private mortgage insurance, just like hazard insurance, will be added to your monthly payments. According to, you’ll pay approximately 0.20% to 1.50% of the balance of your loan. With the exception of FHA loans, PMI will end automatically when you build 22% in equity.

Expect to pay fees. On VA loans, there’s no PMI, but you will pay a fee of about 2.15% of the loan amount your first time, and 3.3% on the second home loan. 

Share this with someone:

5099 W. Genesee St. Camillus, NY 13031

©2020 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Information not verified or guaranteed. If your property is currently listed with a Broker, this is not intended as a solicitation. Equal Housing Opportunity.