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Infographic: Why Is 20% Preferred for a Down Payment?

Stephanie CrawfordStephanie Crawford
May 28, 2014 1 min read
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Infographic: Why Is 20% Preferred for a Down Payment?
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Zillow NashvilleBuying a home? If you are, one of the very first questions you’ll need to answer is, “how much of a down payment should I make?” The answer: ideally, 20 percent. Granted, it’s not easy to save 20 percent of the home’s sale price for a down payment. In fact, saving for a down payment remains the No. 1 obstacle to homeownership for many Americans.

To qualify for a conventional mortgage, you need to have a down payment of at least 5 percent of the purchase price. However, putting less than 20 percent down can have significant financial implications. Not only could a 20 percent down payment save you hundreds of dollars on your monthly payment, but you’ll build equity in the house more quickly and save a considerable amount of money on interest.

Learn more about the benefits of a 20 percent down payment in this great infographic from Zillow below.

WRITTEN BY
Stephanie Crawford
Stephanie Crawford
Realtor

Steph is a Nashville native who has been helping homebuyers and sellers throughout Middle Tennessee since 2003. She's the broker/owner of Brokers Cooperative, manages the NestingInNashville.com website, and oversees contracts, negotiations, and marketing from her home office. 

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