When it comes to mortgages, there’s a big gap between what people thinkthey need in order to get one and the reality of what buyers are successfully doing—especially young people.
You Don't Know I know, I know, I’ve written on down payments before (like last month, when I highlighted that putting 20% down isn’t the norm).About Mortgages!
But you know what? When it comes to what might be the biggest purchase of your life—one that can be incredibly intimidating for first-time buyers—it’s nice to know real facts. And in the mortgage market, reality is very often different from perception. Or, for that matter, myth.
The report summarized that 39% of nonowners believe they need more than 20% for a down payment on a home, 26% believe they need to put down 15% to 20%, and 22% believe a down payment of 10% to 14% would work.