Dear Dave,
I’m 20 years old, and I’m planning to buy a home in the next year. Besides having a 20 percent down payment, what other tips do you have for a first-time home buyer? Also, is there anything I need to guard against when it comes to buying a house?
—Jacob
Dear Jacob,
I’m glad you’re planning on making a down payment of at least 20 percent. That’s a smart move, because it’ll help you avoid the added expense of private mortgage insurance. Also, remember to get a 15-year fixed-rate mortgage loan, one on which your payments are no more than 25 percent of your monthly take-home pay….