How Much Do You Really Need For A Down Payment?

What Are The Pros And Cons Of Putting 20% Down?Let’s examine the advantages and disadvantages of a 20% down payment on a house.Pros Of Putting 20% DownA 20% down payment is the often recommended ideal down payment amount for most loans and lenders. If you can afford to put 20% down, you’ll reap the following key benefits:No PMIYou’ll need to put 20% down to avoid paying private mortgage insurance (PMI) on a conventional mortgage loan. PMI is insurance that protects a lender if a borrower defaults on their home loan.Fortunately, PMI isn’t forever. If you put down less than 20%, you can ask your lender to remove PMI once you’ve reached 20% equity in your home.Equity is the difference between how much your home is worth and the amount you owe on your mortgage. Here are two ways to build equity: Your home increases in value You pay off your mortgage principal through your monthly mortgage paymentsOnce borrowers build 22% equity in their homes, most lenders automatically cancel PMI.Better I...