When purchasing a home, buyers often ask how much money should be put down at closing. While 20 percent was long seen as the benchmark, there really is no right answer. With the variety of mortgage products available today, it is possible to buy a home with virtually no money down. However to avoid PMI, (principle mortgage insurance) this is usually necessary.
Typically, the required amount you will need to put down will depend upon the loan-to-value ratio - the percentage of the property’s appraised value a lender is willing to loan of the mortgage you choose. Keep in mind the amount you are willing to put down can also be used as a strategy when making an offer on a property. If you can afford it, putting more than 20 percent down may make you a more financially attractive buyer.
Ask a mortgage loan specialist for the latest rates and accurate lending information. We can assist with a list of lenders to choose from.
