The Truth About Downpayment

April 16, 2024

By Isabel Guzman, Realtor®

Video Transcription

Homebuyers, do you want to know the truth about down payments? Hi, I am

Isabel Guzman Broker Associate and Realtor with EXP Realty. If you are planning to

buy your first home in the near future, you may want to know this information

regarding down payments. Unless specified by your loan type or lender, it’s

typically not required to put down 20% when purchasing a home. This is fantastic

news, as it may mean you are closer to your home buying goal than you

recognize. According to the Mortgage rate, and I quote, “Although putting down

20% to avoid mortgage insurance is wise if affordable, it’s a myth that it is always

necessary” end quote. The truth to be told is most people opt for a much lower

down payment”. The National Association of Realtors says the median down

payment hasn’t been over 20% since 2005 and most homebuyers today put

down roughly 15%. “So, the big takeaway here, and one you should be excited

about as a homebuyer is you may not need to save as much as you originally

thought. Of course, all loans and lenders are different, so it is always best to do

your own research and homework. And remember, experts predict home prices

to keep appreciating over the next five years, which means your future home will

likely go up in price the longer you wait. “

So with all of this good news, what are you waiting for?! If you would like more

information on the current inventory and prices in your area, please reach out to

my team and I so we can help strategize your next move and make home buying

a reality for you. I'm Isabel, and I'm always happy to help.