Infographic: Help Your Client Understand Why 20% Is Ideal for a Down Payment
Every buyer client asks the question, “how much of a down payment should I make?” You probably answer: ideally, 20 percent. Granted, it’s not easy to save 20 percent of the home’s sale price for a down payment, but the benefits can be huge. For starters, you’ll avoid paying private mortgage insurance (PMI), and your monthly mortgage payments will be lower.
“Saving for a down payment remains the No. 1 obstacle to homeownership for many Americans,” said Erin Lantz, vice president of mortgages at Zillow. “To qualify for a conventional mortgage, you need to have a down payment of at least 5 percent of the purchase price. However, putting less than 20 percent down can have significant financial implications. Not only could a 20 percent down payment save you hundreds of dollars on your monthly payment, but you’ll build equity in the house more quickly and save a considerable amount of money on interest.”
Here’s nifty infographic you can share with your clients to help them learn more about the benefits of a 20 percent down payment.
Zillow’s mortgage calculator
Find out how a down payment will affect your monthly mortgage payment.
Down payment calculator
Having trouble saving for a down payment? See if you qualify for a down payment assistance program.
Infographic originally published on the Zillow Blog on May 28, 2014.
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