The National Association of Realtors NAR Profile of Home Buyers and Sellers shows a typical down payment for first-time buyers is This is good news in a market where home prices have gone up a lot But there are many reasons why a down payment is smart This article will look at the benefits of a down payment and how to get close to it Pros and Cons of Putting Down on Your Mortgage Key Takeaways The typical down payment for first-time homebuyers is according to the NAR Private mortgage insurance PMI can add - to the annual loan amount for down payments less than Saving for a down payment can help avoid PMI qualify for lower interest rates and achieve more manageable monthly payments Building a down payment may delay the benefits of homeownership and impact other financial goals Strategies like budgeting and automating savings can help homebuyers save efficiently for a down payment Introduction Home financing has changed and so have the rules for down payments Many think a down payment is needed to buy a home But there are other ways to finance a home that don't require upfront The Conventional Wisdom of a Down Payment For a long time people believed a down payment was essential It was seen as a sign of being financially ready It could also mean lower interest rates and no private mortgage insurance PMI But saving for a down payment is hard especially for first-timers It's even tougher in expensive areas... Login to read full