When it comes to buying a home, many people believe that they need to put down a large down payment in order to be approved for a mortgage. However, this is not always the case. The average down payment for all borrowers is 14%, and for first-time home buyers, it’s even lower at 6%.
This means that you can get into a home sooner and save money for other things. However, if you put down less than 20%, you will have to pay for “mortgage insurance” on the loan. This is because it’s slightly riskier for the lender when the borrower puts down a smaller amount.
But as time goes on and home values increase, plus you make payments on your mortgage, your equity in the property increases. This means that you have the opportunity to remove the mortgage insurance on your property.
If you have any questions about buying a home, don’t hesitate to reach out. I’m here to help you navigate the process and make it as smooth as possible. Happy house hunting!
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