what is a good down payment amount to buy a house?

I am a first time home buyer, and am lost, it is still in the future for me as I am still saving a down payment. what is a moderate sized down payment? would it be 10% or 20% of the cost of the house?

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  • Anonymous
    9 years ago

    I'd say 20 per cent of the cost of the house, but it is possible to buy a house with as little as 5 per cent. Some lenders will still lend 95 per cent, but the more you can save for deposit the better off you will be.

  • mlb
    Lv 5
    9 years ago

    Banks usually want 20% down now. Thanks to all those bad loans in the past. You used to be able to borrow all of the money with no down payment. I bought my house in 2005 before this came into effect. It sucks now for people wanting to buy.

  • 3 years ago

    it truly is been performed for the previous countless years, regrettably with some disastrous effects for individuals that have been given in devoid of down cost and now can not refinance into greater suitable expenses or sell by way of fact the valuables is nicely worth below they offered it. maximum lenders have performed away with the one hundred% purchases (which replaced into 2 loans mixed often to hide one hundred% financing), yet FHA helps 3% down cost- and funds could be proficient, and FNMA introduced clever June a million, additionally they'll enable 3% down funds.

  • Anonymous
    9 years ago

    20%

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  • 9 years ago

    10 to 20% based on the price of the house, and what the lender requires based on your credit score and background.

  • 9 years ago

    20% will avoid that nasty PMI.

    Private Mortgage Insurance can costs thousands a year.

    It doesn't go towards principal or interest, and it's not tax deductible (in the US).

    It's like throwing money away year after year...

  • ?
    Lv 7
    9 years ago

    20% because anything less and you pay a monthly PMI payment.

  • 9 years ago

    20% is good. Otherwise you pay mortgage insurance.

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