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How Much is Down Payment on a House?
People are buying homes left and right and now you want to own your own home too. Just how much is a downpayment on a house today? Do you need 20% or more? This is the biggest misconception people have in assuming you need 20% down to buy a home. Back in the old days when I went when our parents and grandparents were getting homes, a lot of times they did need to have 20% down payment.
The mortgage industry has evolved a ton over that time period. Currently there are many different ways to get into a house for much much less than that 20%. In fact, I wrote a post on several first time hombuyer grants and programs available currently to help you with your downpayment.
When you have less than 20% downpayment
PMI is required when a borrower is unable to provide the typical 20% down payment of the property's purchase price when you're applying for your mortgage. PMI also known as mortgage insurance is the insurance premium that you as the borrower pay in order to protect your lender in the event that you default on your primary mortgage.
Now this is because the lenders are gonna obviously look ... more
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