Making a down payment of less than 20% is common. sturti/Getty Images
Courtesy of Business Insider ( https://www.businessinsider.com/20-percent-down-payment-rule-mortgage-homebuying )
- For many would-be homebuyers, saving a 20% down payment for a mortgage can be a big barrier to homeownership. Consequently, more people are buying homes by putting less money down.
- Putting a full 20% down on mortgage ensures you won’t pay private mortgage insurance and will most likely get the lowest available interest rate.
- Some real-estate agents, however, say the benefits of making a smaller down payment outweigh the consequences — it can help homeowners build wealth and equity sooner rather than later.
Putting 20% down on a home purchase is daunting, and rightfully so.