In order to acquire a mortgage loan to finance the purchase of a property, you need to have sufficient cash to pay for the down payment. The usual rule has been a minimum of 10 percent of the property purchase price as a down payment.

Although the dollar value of a down payment is relatively high, obtaining the funds for it is not beyond reach. If you have the will power, there are ways in which you can save adequate funds to make that down payment for the property you desire.

If you are determined enough to get what you want, you most likely will. With determination comes motivation for you to save, limited only by the size of your paycheck and your dreams.

Make one savings account your “Down Payment Goal” and any extra cash, coins, money from presents, raises, taxes, part-time jobs, paid off debts, etc. go directly into that account.

One good way to put money aside is never to see it. You can have it automatically transferred to your ‘special’ account. With this, you will be certain that you will not be tempted to spend it and will not physically have to deal with it.

Make your money work harder for you. Put your money into a certificate with a higher interest yield. Also, your money will be tied down and you will not be able to withdraw it without a penalty, thus less tempted to take it out.

If you have been paying monthly installments for your car loan, credit cards or your education loan and have paid off one of these loans, continue paying yourself now the same amount. You will be living on the same funds, yet the money from the old bill will now go into your “Down Payment Goal” account.

Other Options If You Do Not Have Money For A Down Payment

Today is a frustrating time for people trying to purchase a home or for those in the mortgage business. There are now strategies for people who have money saved for down payments and other strategies for people who are practically broke.

There are so many plans now that have been developed; we shall only mention a few. It would be best to ask your realtor to explain what would be best for you.

No down payment loans have the disadvantage of requiring costly mortgage insurance. You can avoid this by getting a “piggyback loan”: a home equity loan that piggybacks on top of a primary mortgage.

The payment on the second mortgage equals what would have been the cost of mortgage insurance and the buyer can deduct the interest on their income taxes. These loans have zoomed in popularity in the past few years.

Another program is the Home Solution program where the seller ultimately contributes 3 percent for the down payment.

The home’s seller “donates” 3 percent of the home’s sale price to the nonprofit program, plus a fee. The nonprofit program then gives the buyer that 3 percent at closing, (used as a money gift which is accepted by the Federal Housing Administration) with the money serving as the down payment.

So, if there is a will there is truly a way.

First of all you can not receive a large amount on a regular mortgage. Regular mortgages are used for the more common property. This is for property that the buyers do not have to borrow exceedingly high amounts.

A regular mortgage loan usually has a fixed interest rate. This is good for first time buyers, because the buyer will always know what their monthly payment will be. This type of regular mortgage loan is called a fixed-rate mortgage.

Another type of regular mortgage is called an interest only fixed-rate mortgage. This is where for the first half of the mortgage the buyer will pay only on the interest. The second half the buyer will be paying on the interest and the principle. The interest rate is still fixed like the fixed-rate mortgage.

There is a down side to a fixed-rate mortgage, if the interest rate goes down on the market then your interest will not drop it will stay at the interest rate that it was set at when you settled your loan. The way to drop your interest would be to refinance your mortgage.

On a positive note if the interest rate on the market rises, the buyer’s mortgage will not be affected. This can also help a buyer to plan for the future. They will always know what their interest rate will be and give them security knowing that it will never raise on their mortgage.

A jumbo mortgage is great for those buyers who are purchasing a home that costs more then the average home. That is why it is called a jumbo mortgage. A jumbo mortgage is used when the loan amount is higher then the standards set by Fannie Mae and Freddie Mac.

Fannie Mae (FNMA) and Freddie Mac (FHLMC) are the two largest secondary market lenders. They purchase loans from other individual lenders. If the loan exceeds their limit, then other investors such as insurance companies and banks cover the rest of the mortgage.

The interest rate on a jumbo mortgage is higher then the regular mortgage. There is more risk on a jumbo mortgage. The interest rate on a jumbo mortgage depends on the amount borrowed and the property taxes. Being based on these two things it can really raise the interest rate on the jumbo mortgage.

Now if a mortgage is to exceed $650,000 then it is called a super jumbo mortgage. This type of mortgage is used for the million dollar homes or even 2 million dollar homes.

To summaries a regular mortgage is for those who would like to have a fixed or lower interest rate, giving them the same monthly payment for the life of their mortgage. This type of loan is used for the average property. This is great for first time buyers.

A jumbo loan is for those purchasing property between $400,000 and $600,000. The interest rate is usually based on the property taxes and the amount of the mortgage. A jumbo loan has a high risk attached to it.