| Some fun facts: 62% of Americans believe a 20% down payment is necessary, though most mortgage loans require less than 5% down payment. First-time home buyers make a median down payment of 7%.I’m often surprised that many new home buyers think they need to put 20% down to buy a home. It’s true that with down payments less than 20%, you’ll be required to pay private mortgage insurance, or PMI, which can raise your payment with no clear benefit to you. Therefore, to reduce your payment, it helps to put more money down. However, in time, you can eliminate PMI when your loan-to-value reaches 20% or more…either because your home value has risen or you’ve paid off a bunch of your mortgage.The point is, you may need less money down than you think to buy. If you or someone you know is thinking about buying, please get in touch with me. Don’t assume you can’t buy…get answers! (718) 399-3320 |