[USER]

I am a 29-year old living in New Jersey. Currently annual salary is $155,000. I currently have $60,000 saved up for a potential down payment. $32,000 in my IRA, $75,000 in my stock brokerage (inc 401K and HSA).

Planning on marrying in 2026, so I would like to reserve at least $20,000 on wedding expenses and honeymoon.

I also want to purchase a town home condo sometime in mid-2025 (fingers crossed that mortgage rates start plummeting, if Fed continues on aggressive rate hikes).

How much is a good amount for a down payment? Is $60,000 (potentially more next year), a good starting amount? Am I doing relative okay financially?

[Kat]

By chance do you work remotely? Cause I would take that salary and run to another state. NJ housing market is notoriously high with a high cost of living.

[Noah]

You’re killing it. Don’t worry about other people ahead or behind you. Just do you. Downpayment amount depends on cost of real estate, but think in percentages.

You can do as little as 3-5% down and although your payment will be higher, you’ll have more cash on hand for repairs, emergencies, and your second property in the future.

How you’re doing depends on where you want to be in the future.

[Guy]

Personally I would avoid the condo. It is a fancy name for apartment with a HOA fee that can and will climb over time.

In a condo you are dealing with neighbor noises and you have responsibilities through HOA fees of the parking lot, grounds, building maintenance, etc.

[Lita]

3% to 5% down on a duplex or quad live in one unit.

[Anastassia]

I chose to pay PMI. I only put 5% down. Example our house was $405,000 to avoid PMI we must put 20% down $81,000 or pay an extra $163.52 a month PMI.

5% down is 20,250 so we would have had to put down an additional $60,750 to avoid it.

I looked at it like $163.52*12 is $1,962.24 a year on $60,750 that’s 3.23% that’s nothing.

Can I keep the money instead and make more than 3.23% on that $60,750 to be worth paying that PMI?

For me the answer is yes so, I pay it until our house goes up to $481k+ then I’ll be calling the mortgage company to remove

[Benjamin]

Interest rates are coming down. It should be around low 6s and high 5s. It sounds like it’ll continue to come down in the next few months.

[Robert]

If you can join navy federal cu, the have homebuyers choice $0 and no PMI. When you get this mortgage they have a no-refi rate reduction plan, which lets you buy a low interest rate for $250, if rates come down.

You down payment would be only what’s required to get the best interest rate

[Hicham]

You probably qualify for first time home buyers and might not need to make a down payment or pay PMI. Check with your local realtor organization

[Kristen]

You’re doing great. Ideally 20% down to avoid needing mortgage insurance

[Molly]

1. Plan on putting 20% down to get the best rates. Rates won’t come down as fast as they went up.

2. Be Very careful with HOA properties. Thoroughly study the Monthly minutes, Annual Budget, Reserves and Reserve Study as well as Rules.

Plan to join the Board if at all possible. You’ll be sharing finances with these folks.

[Author]

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