
Homebuyers make a median down payment of 12%. If qualified, you can put as little as 3% down on a home with a conventional loan.
While making a 20% down payment isn’t required, you’ll get a better deal on your mortgage if you do it.
Benefits of Buying a House With 20% Down
Here are some of the biggest benefits of making a large down payment:
- Score a better interest rate and pay less for your loan.
- Have lower monthly mortgage payments.
- Avoid paying for private mortgage insurance.
- Have an offer that’s more attractive to the seller.
Drawbacks of Putting 20% Down
At the same time, there are some downsides to putting more money down:
- Leaves less money in your savings for emergencies and to put toward other expenses or financial goals.
- Can take longer to save for a down payment and buy a home.
Is It Worth Putting 20% Down?
Whether it’s worth making a 20% down payment will depend on your financial situation and personal goals. If you can afford it — or are willing to take the time to save up — then you’ll likely save money by getting lower interest rates and avoiding mortgage insurance. However, if you’re eager to become a homeowner ASAP, then you might choose a loan with a low down payment that lets you put less than 20% down and eat the higher cost of your loan.