The results of a new survey show Americans prefer a 10 percent down payment when buying a house. The 2017 Mortgages In America Survey found it was the most popular option among young, middle aged, and older home buyers when asked to choose among down payments up to 30 percent. And it lines up pretty well with actual data. In fact, the average down payment in 2016 was 11 percent, with borrowers under the age of 35 putting down something closer to 8 percent.
Even though Americans clearly prefer it, lower down payments come with tradeoffs. For one, if you put less money down upfront, you may have to pay private mortgage insurance, which can add to your monthly mortgage payment. Which means, though home buyers have options and won’t necessarily have to put 20 percent down on the house they’re buying, it is always a good idea to save up as much as possible, so you have a substantial amount to invest in your home. It’ll make you a more attractive buyer to home sellers, in addition to helping keep your mortgage payment more affordable. To learn more about home buying options contact Jennifer Bixby at Don Peterson & Associates today.
This advertisement was provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E 6th St. Jennifer can be reached at 402-721-9700 for answers to questions regarding your real estate needs.