Mortgage Down Payment

by Anne
(Dayton)

Ask Kate about mortgage down payment: Hi Kate, If I refinance with another mortgage company do I have to pay another deposit? We paid $147k for our house and only owe $119k.


Anne continues... An agent at our credit union suggested we put down another $7,000. Is this another mortgage down payment that's required or just a way to reduce the interest?

Under the President's refinance rules can we get a break for refinancing to a lower interest rate?

Kate Answers: Mortgage Down Payment


Ask Kate at Get-Your-Best-Mortgage-Rate.com
Dear Anne,

Generally a mortgage down payment is associated with buying a house. During a refinance, it is called a principal reduction or paying down the mortgage.

Being required to pay down your loan amount is not triggered by switching to a different bank unless of course this company does not have sufficient loan programs to match the needs of its borrowers.

So I'd certainly ask your credit union if they have alternate programs such as FHA home loans.

Sidebar: Don't rule out FHA because of ill founded rumors. Check out FHA loan requirement - Yes! No! Maybe! Wait! Of Course!

In come cases though, if you have targeted a specific mortgage rate, the only way you may qualify is to reduce your principal.

Making Home Affordable

Because many details factor into loan approval, you'll need to check with your credit union to see if you qualify for any of the Making Home Affordable programs.

Ask about HAMP (Home Affordable Modification Program) or HARP (Home Affordable Refinance Program). But don't stop there. As already mentioned, inquire into FHA.

Fresh Outlook On Refinance

I have also included my refinance articles at the bottom of this page. You'll find my original twist on refinance in articles such as How To Calculate The Break Even Point In Your Mortgage Refi.

Best Wishes,

Ask Kate


Click here to comment on mortgage down payment.
Click here to ask Kate a question.



Finding Help You Need for Refinancing

Refinancing Advice - Your opportunity to get down to earth refinance nuts and bolts from a mortgage insider.

Having trouble refinancing your mortgage due to fallen property values? Go to Special Edition Making Home Affordable Options.

USDA Rural Home Loan Refinance with no appraisal, no credit report, and no debt-to-income calculations.

Announcing Kate's Mortgage Information Planner - To save money, get your ducks in a row first.

Are you a homeowner trying to decide if Mortgage Refi is worth the cost?

How To Compare Mortgages - Yes it is enough to make anyone want to toss up their hands.

New! Ask Kate's secret to reducing mortgage refinancing costs. Home buyers should read this too!

Real Estate Investor Loans - Three options for investors.

Surprise, it's a barn! Is a Certificate Of Occupancy necessary for your home mortgage refinance?

Refinance With Cash Out - Where is my loan approval?

Save money using My Special Refinance Formula.

Fresh Refinance Ideas - Reasons why and why not to refinance.

Discover my Secrets To Refinancing based on Robin's story

Low Mortgage Payments For Home Owners - Learn how to ask questions and qualify your lender.

Don't be distracted by refinancing lingo. 10 best kept secrets to Low Mortgage Payments.

A collection of Ask Kate Refinancing Questions and Answers II.

A collection of Ask Kate Refinancing Questions and Answers I.

Click here to comment on Mortgage Down Payment.
Click here to ask Kate a question.

Return to the home page of Get Your Best Mortgage Rate from Mortgage Down Payment

Share Mortgage Down Payment

I depend on your word of mouth! So please help me spread the word about mortgage down payment with your friends using these easy buttons.


Click here to add a comment.

You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

Recent Articles

  1. Kate's Mortgage Rate Report August 11: Rates Bouncing Like a Ping Pong Ball

    Aug 11, 16 10:49 AM

    Kate's mortgage rate report for the week ending August 11, 2016: Rates Bouncing Like a Ping Pong Ball
    Mortgage interest rates have been bouncing like a ping pong ball: After last Friday's strong job report began pushing up mortgage rates, the market is now hinting at a reversal, with the 30-year hover…

    Read more

  2. Ask Kate how to avoid unauthorized mortgage rate extension fees

    Aug 11, 16 10:18 AM

    Ask Kate how to avoid unauthorized mortgage rate extension fees
    Ask Kate how to avoid unauthorized mortgage rate extension fees:

    After locking in her rate, the bank sent a Texan homeowner, Laura, notification of several thousand in fees that she must pay in order…

    Read more