What is the lowest amount I have to use for a down payment on my home purchase?
A 20% down payment was the standard years ago, but most lenders will allow the buyer to put as little as 5% down. On a $100,000 loan, the homebuyer would be expected to come up with at least $5,000. When you put less than 20% down, you will be required to purchase mortgage insurance (about $30-$50 a month ). Don’t forget that you will also be expected to pay for additional closing costs, so allocate for these costs when saving up to buy your home. Should I put down as much as possible when buying my home? Any down payment above and beyond your lender’s minimum requirements will depend on your financial situation. At the minimum you should leave enough funds available to cover related loan costs and two months worth of mortgage payments. Any remaining funds should be used to best fit your total financial picture. Would you better off investing the money, buying furniture, and reaping the benefits of a larger mortgage interest deduction? The answer will depend on your financial goals. I’
