It was great seeing you this past week and hopefully we can see each other again soon! Now onto the fun stuff.
Well most would think that a loan is a sum of money you borrow from a bank or some kind of lender. Well this is true but there are several loans out there that require a down payment. For instance some companies make you put 20% down on a loan you are taking out. I kind of think this defeats the purpose because you are taking out a loan most likely because you don't have the money. If you have to have down payment, most people would not have enough money to take out the loan.
Now I can also see the good parts to this because most banks offer a lower interest rate if you put up a down payment. Also I can see that if a lender requires a down payment they can see you are going to be able to repay, at least in most cases.
What do you think? Is a down payment a good or bad idea?
3 comments:
A down payment on a loan?...
To me, it all depends on how much money you have to put down. If the bank is asking for something ridiculous like thousands of dollars, I do not see the point. If they ask for a down payment of anything under $800 dollars than maybe it’s a good idea but isn't that what a credit checks is for?...To see if people pay their bills on time.
I know the reason that people take out loans is because they are broke. If people had money for a down payment, they would just simply save money monthly so that they would not need the bank's assistance.
Yea, I agree that is what credit checks are for. Also if they are broke how can they get money for a down payment on the loan. It is all crazy to me. I guess if it was a very small percent of the amount it wouldn't be bad but still it isn't the best idea. I just keep thinking back to student loans and how college students definitely would not be able to pay for school if they had to put a big down payment on every loan they take out.
Actually I kind of think a down payment is a good idea. But mainly I talking about for like Mortgages. One the less you need to finance the lower the payments will be. And the less I have to pay per month the better.
Next a few years ago many people did not put down payments on their new homes. Now since the market is down alot of people own more on their house then what it is really worth. Now say if you put a $20,000 down payment, and your houses value goes down by $15,000. You can still sell your house and pay the pervoius mortgage off in full.
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