My little obsession on mortgage rate
Fortunately, lenders today offer many low down payment mortgages. But when deciding how much to put down, you should consider the following: Is 20 percent the standard down payment? The fact is that most mortgage lenders do require you to make the 20 percent down payment at the minimum. If you cannot manage to make the 20 percent down payment, you will probably be required to purchase Private Mortgage Insurance or PMI. The cost of PMI is usually equivalent to one half of 1 percent of the selling price of the property, and is intended to protect the mortgage company if you are unable to pay back the loan. You will therefore end up avoiding having to pay the PMI costs.