How do down payments work and how much should I put down?

The down payment is your own money applied to the purchase price. The rest of the price is paid by your mortgage loan.

A larger down payment means a smaller loan, which can mean a lower monthly payment and less interest paid over time.

Many buyers assume they need 20 percent down. In practice, some conventional loans allow as little as 3 percent, and several programs are designed for first-time buyers with even lower down payments.

Putting down less than 20 percent usually means paying private mortgage insurance, which is an added monthly cost until you build enough equity.

Your ideal down payment depends on your savings, your monthly budget, and your goals. A bigger down payment lowers your payment but ties up cash you might need for closing costs, moving, or repairs.

A lender walks through the scenarios so you can see how different amounts change your payment and your cash on hand.

Your down payment usually comes from your own savings, but in many cases you can use gift funds from family, provided they are properly documented and the lender allows it.

Some programs also offer down payment assistance. The rules vary, so it is worth exploring with a lender who knows the options.

I connect you with a lender who explains your down payment options clearly and shows you the real monthly picture for each one.

Together we make sure the home you choose fits your life and your budget, not just on paper.