The Peggy Patenaude Team | Andover Real Estate, North Andover Real Estate, Boxford Real Estate


You may have heard that you will need 20 percent of the purchase price of a home to put down in order to buy it. As the prices of homes continue to rise. 20 percent of the purchase price of any home may not seem like a small feat to save up. It’s not impossible to buy a home. You may be able to get around the 20 percent rule in a variety of ways. Keep in mind that putting down as large of a down payment as you can will help you to land the home of your dreams a bit faster. 


The 20 percent down rule is sort of a myth. While the more you have saved up, the better your chances of standing out among other buyers are. You can still get a mortgage with less than 20 percent down from most banks. The drawback in not putting down 20 percent on a home is that you will need mortgage insurance (also known as PMI). Mortgage insurance is necessary if you put less than 20 percent down because the lender wants protection in case the home is foreclosed on due to a lack of payments.


All About PMI Payments


If you do put less than 20 percent down on a home, your PMI payments won’t go on forever. Once your loan is paid down a bit, you’ll be free and clear of PMI payments. As a rule, if the loan-to-value-ratio reaches 80 percent, you can ask your lender to cancel the insurance for you. When the loan-to-value ratio reaches 78 percent, the lender will automatically cancel the PMI. This is a welcome decrease in expenses since PMI insurance can add up to be hundreds of dollars per month.      


Finding A Way Around 20 Percent Down


Before you even decide to buy a house, you should look at financing options. There are certain programs that are available to you to help. If you know about them ahead of time, you’ll be able to take advantage of them.  


Government Programs


Many different government agencies have programs available to help people get a home easier. These programs will provide home loans with a low interest rate and little to no down payment. The downside to these programs is that many of them actually require you to purchase private mortgage insurance as a contingency to get the loan. You’ll need to plan for these extra expenses. There are even grants available to help you with your down payment. Check in your state or local HUD office for details on various programs that can assist you with your down payment on your first home. Through a bit of savings and research, owning your first home can be possible with or without 20 percent down.


Impressive & Immaculate Cormier built 5+ Bedroom Colonial w/Gorgeous views of the 14th Hole at the Andover Country Club Golf Course from many rooms! This luxurious home is filled w/natural light & showcases a recently renovated, richly detailed Kitchen w/ a generous amount of cabinets & large center island leading to an expanded Deck. Flexible floor plan allows room in the Kitchen for a Family Room set up or spacious dining area.FIrst floor includes a formal Living Room w/FP, a formal Dining Room, Home Office, & a magnificent Family Room w/ FP, Vaulted Ceiling,Wet Bar & French Doors to another Office or Exercise room.The 2nd floor features 4 bedrooms (2 en-suite), 3 total Full Baths & Laundry. Beautifully finished Walk-out LL has 2 add'l Bedrooms, Full Bath, Family Room, Xtra WI closet & more, an ideal space for In-Law/Au Pair.HOUSE IS WIRED FOR BACK-UP GENERATOR. Set back off the road, this home is perfectly located near schools, Rtes 93 & 495, Downtown, Phillips Academy & Pike school

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5 Beacon Street, Andover, MA 01810

Single-Family

$1,175,000
Price

11
Rooms
5
Beds
4/2
Full/Half Baths
Impressive & Immaculate Cormier built 5+ Bedroom Colonial w/Gorgeous views of the 14th Hole at the Andover Country Club Golf Course from many rooms! This luxurious home is filled w/natural light & showcases a recently renovated, richly detailed Kitchen w/ a generous amount of cabinets & large center island leading to an expanded Deck. Flexible floor plan allows room in the Kitchen for a Family Room set up or spacious dining area.FIrst floor includes a formal Living Room w/FP, a formal Dining Room, Home Office, & a magnificent Family Room w/ FP, Vaulted Ceiling,Wet Bar & French Doors to another Office or Exercise room.The 2nd floor features 4 bedrooms (2 en-suite), 3 total Full Baths & Laundry. Beautifully finished Walk-out LL has 2 add'l Bedrooms, Full Bath, Family Room, Xtra WI closet & more, an ideal space for In-Law/Au Pair.HOUSE IS WIRED FOR BACK-UP GENERATOR. Set back off the road, this home is perfectly located near schools, Rtes 93 & 495, Downtown, Phillips Academy & Pike school
Open House
No scheduled Open Houses

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51 Gray Road, Andover, MA 01810

Land

$349,900
Price

1.01
Acres
Residential
Land Type
Beautiful lot located on the corner of desirable neighborhood. What a fabulous place to build your dream home! 1.01 acre wooded lot provides your perfect future home. On the corner of Korinthian Way - a lovely neighborhood - perfect for long walks and bike riding. Bancroft & Doherty schools. Only a few minutes to Rte 93, Andover Center or Phillips Academy. Buyer to do their own due diligence. Do not walk the lot without an appointment. Town water. Private septic. Perc tests, etc. will be buyers responsibility.
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