Why We Shouldn’t Fear Low Down Payments
In 2009, the group said, the median home price was $172,100. With closing costs of 5% added to a 20% down payment, a buyer would need $43,025 at closing, the CRL calculated, compared to $25,815 with a 10% down payment or $17,210 with a down payment of only 5%. If a family could save $250 a month toward down payment and closing costs it would take 14 years to save enough to buy with 20% down, compared to nine years with 10% down and six years with a 5% down payment.
Related Articles
Obviously, higher down payments price many interested buyers out of the market altogether.
—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.
