Down Payments Reach a New High

By
Mortgage and Lending with ChangeMyRate.com® A Mortgage Corporation NMLS #1326269

The national median down payment hit its highest level since at least 2005, ATTOM Data Solutions reports. The median down payment on a single-family home purchased with financing in the third quarter was $27,500. That is up 41% from $19,502 in the third quarter of 2020.

Overall, the median down payment of $27,500 represented 8% of the national median sales price for homes purchased with financing in the third quarter, up from 6.5% a year earlier.

Down payments are higher likely because home prices are higher. The National Association of REALTORS® reports that existing-home sale prices were 13% higher in October compared to a year earlier.

While borrowers are bringing more money to settlement, they are also financing more of the home purchase than in years past. The median loan amount was $295,954 in the third quarter, up 13% compared to a year earlier, according to ATTOM Data Solutions.

To learn more about down payments and the home buying process, visit the SCOOP! Blog

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