Mortgage A review of the facts
But when deciding how much to put down, you should consider the following: Is 20 percent the standard down payment? The fact is that most mortgage lenders do require you to make the 20 percent down payment at the minimum. If you cannot manage to make the 20 percent down payment, you will probably be required to purchase Private Mortgage Insurance or PMI. This insurance typically costs about one half of 1 percent of the purchase price of the home and protects the lender in the event that you should default on the loan. You will therefore end up avoiding having to pay the PMI costs. and thereby save more money.