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  • Casual Articles - Zero Down Home Loans – Pros and Cons of No Down Payment Mortgages

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    t money instead of incurring more debt to accomplish the aforementioned tasks.

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    100% financing is a great option for borrowers, especially when buying your first home. However, as with any financial consideration, there are several pros and cons to consider before closing on a no down payment home loan. Below are a few to think about:

    Pros

    1. You Can Keep Your Money to Do Work On the House

    There are likely many things you will want to do to your home shortly after moving in, such as decorating, painting, or furnishing. You may even want to do some full-scale remodeling that can add up in a hurry. For this reason, it is often better to keep your down payment money instead of incurring more debt to accomplish the aforementioned tasks.

    2. More Reserves

    Money in the bank will help you enjoy ho

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    os and cons to consider before closing on a no down payment home loan. Below are a few to think about:

    Pros

    1. You Can Keep Your Money to Do Work On the House

    There are likely many things you will want to do to your home shortly after moving in, such as decorating, painting, or furnishing. You may even want to do some full-scale remodeling that can add up in a hurry. For this reason, it is often better to keep your down payment money instead of incurring more debt to accomplish the aforementioned tasks.

    2. More Reserves

    Money in the bank will help you enjoy h

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    There are likely many things you will want to do to your home shortly after moving in, such as decorating, painting, or furnishing. You may even want to do some full-scale remodeling that can add up in a hurry. For this reason, it is often better to keep your down payment money instead of incurring more debt to accomplish the aforementioned tasks.

    2. More Reserves

    Money in the bank will help you enjoy h

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    or furnishing. You may even want to do some full-scale remodeling that can add up in a hurry. For this reason, it is often better to keep your down payment money instead of incurring more debt to accomplish the aforementioned tasks.

    2. More Reserves

    Money in the bank will help you enjoy h

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    t money instead of incurring more debt to accomplish the aforementioned tasks.

    2. More Reserves

    Money in the bank will help you enjoy home ownership, and it will help you to cover the unexpected costs that many new homeowners do not foresee, i.e. high heating expenses, electricity, and inevitable problems. Having some cash reserves will ensure you can withstand some adversity and still keep up on your monthly payments.

    Cons

    1. Higher Rates

    Usually, your lack of down payment will leave you with higher interest rates to cover your lender’s heightened risk on lending. Shop carefully for your 100% financed mortgage, though, and you should find something comfortable for you that will make it a wise move.

    2.

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