How Much Should You Put Down On A House?
How Much Should You Put Down on a House? By: Greg McKinney Mineola Texas Everyone wants the magic answer – how much money should you put down on a house? Is it 20%? Can you put down less or more than that? The down payment isn’t a one-size-fits-all approach. It varies by borrower, loan program, and situation. Here’s what you should know. Do you Need a 20 Percent Down Payment? The good news is you don’t need a 20% down payment all the time. Is it nice? Sure. But if you don’t have 20% to put down, you can still get a mortgage. A 20% down payment gives you instant equity in your home. It also lowers your risk of default which may allow lenders to give you more attractive financing options. If you’re taking out a conventional loan, it also allows you to avoid Private Mortgage Insurance (PMI). But don’t worry, if you take out conventional financing and put down less than 20%, you can cancel the PMI once you owe less than 80% of the home’s value. How Much Should