What Is The Ideal Down Payment
Surveys have been taken and more than 50% of Americans prefer a 10% (lowest offered by survey) down payment on purchasing a home. It is also the most popular across the generations.
Most people say they do not understand how mortgages work. The younger generation does not understand about interest rates and private mortgage insurance. Private mortgage insurance plays a significant roll in the over all cost of the home. One rule to remember would be “The lower the down payment the higher the cost of private mortgage insurance”.
How much down payment you need to purchase a home depends on your financial circumstances, location and price of the home.
There are a number of options for financing. Some loans that are available have a zero down payment while others 3%-5% which are all helpful programs to consider. If you are a Veteran you can purchase a home with zero to little down. You need to check your eligibility. In all cases decent, but not perfect, Credit is a must, along with a study job and responsible enough to pay your bills.
The young are hesitant to purchase, they rather rent, but they are “JUST AFRAID TO COMMIT”.