- A down payment is a percentage of the total cost of the home you are purchasing that must be paid to the seller, with the balance paid through your mortgage.
- A down payment typically ranges from 3-20 percent of the total home price, depending upon the type of loan you qualify for based on your credit history, type of home, and reason for buying.
- Of course the higher the down payment, the lower your monthly mortgage payment will be.
- A down payment of less than 20% typically requires the borrower to purchase mortgage insurance.
A down payment can come from your savings, the proceeds of another home sale, or gifts or grants from family, employers or non-profits. Access our down payment calculator here.