The truth behind 20% down…

Infographic: Why Is 20% Ideal for a Down Payment?

 Erin Lantz | Zillow Blog | May 28, 2014 | link

Buying a home? If you are, one of the very first questions you’ll need to answer is, “how much of a down payment should I make?” The answer: ideally, 20 percent. Granted, it’s not easy to save 20 percent of the home’s sale price for a down payment. In fact, saving for a down payment remains the No. 1 obstacle to homeownership for many Americans.

To qualify for a conventional mortgage, you need to have a down payment of at least 5 percent of the purchase price. However, putting less than 20 percent down can have significant financial implications. Not only could a 20 percent down payment save you hundreds of dollars on your monthly payment, but you’ll build equity in the house more quickly and save a considerable amount of money on interest.

Learn more about the benefits of a 20 percent down payment below.

Blog_20Percent_Infograph_Zillow_05-27_a_03

Read more…

Author: kimhuntkw

We specialize in Real Estate in the Pleasanton, Dublin and Livermore areas of the East Bay in California

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