Home buyers don’t need to save the traditional 20% home down payment – an average of $35,980 across the U.S. – finds www.GoBankingRates.com. In its newest guide, the leading finance site investigates how people can buy a home with less than 20% down, and explains the pros and cons of a low down payment mortgage.
EL SEGUNDO, CA (March 14, 2013) – As the housing market continues its path to recovery, and mortgage interest rates remain low, many Americans are working towards their dream of buying a home.
“A big deterrent for prospective homeowners, however, is the idea of having to pay a 20 percent home down payment,” says Stacey Bumpus, expert contributor to GoBankingRates.com. “Having to come up with thousands of dollars to secure a mortgage loan can be extremely intimidating.”
To make the traditional 20% down payment, for example, the average home buyer would need to save $35,980, according to the most recent data from Zillow.com. For residents of states with higher living costs, such as California, the down payment would be almost double the national figure at $66,080.
But GoBankingRates finds that saving a 20% home down payment isn’t necessary to secure a mortgage loan, and outlines steps for finding a low or no down payment mortgage in their latest guide. The report also includes the pros and cons of a low down payment mortgage, helping consumers weigh the initial benefit against long-term disadvantages (like private mortgage insurance and more interest).
Find out how to finance with less than 20% down here.
For questions about this report or to schedule an interview with a GoBankingRates editor, please use the contact information below.
About GoBankingRates
GoBankingRates.com is a national website dedicated to connecting readers with the best interest rates on financial services nationwide, as well as informative personal finance content, news and tools. Go Banking Rates collects interest rate information from more than 4,000 U.S. banks and credit unions, making it the only online rates aggregator with the ability to provide the most comprehensive and authentic local interest rate information.