Do You Need A 20 Percent Down Payment

Dated: July 8 2021

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Here is what you need to know about the benefits of making a 20% down payment. 


LOWER INTEREST RATES - A larger down payment indicates the buyers' financial stability to lenders, so you are more likely to receive the lowest possible interest rate. 

GREATER LEVERAGE IN A COMPETITIVE MARKET - When sellers receive multiple bids, offers that are secured with a higher down payment tend to be more appealing. 

AVOIDING PRIVATE MORTGAGE INSURANCE (PMI) - This protects the lenders should the buyers default on the loan. PMI can be avoided with larger down payments. 


However, the median down payment for a home buyer is well below 20%, according to FreddieMac.com. In 2020, the median down payment was 12% for all home buyers and just 7% for first-time buyers. 

Options such as VA, FHA and USDA loans require low or no down payments for qualified applicants. 


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Karin Waterschoot-Perez

Executive Vice President of Sales Experienced Realtor, Karin Waterschoot-Perez, currently serves buyers and sellers located in and around Franklin County. With over 15 years of experience in the re....

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Do You Need A 20 Percent Down Payment

Here is what you need to know about the benefits of making a 20% down payment. LOWER INTEREST RATES - A larger down payment indicates the buyers' financial stability to lenders, so you are more

Read More