![]() LimitationsIf your credit score is 500 to 580, you'll need a down payment of 10%Īn adjustable-rate mortgage (ARM) is a type of home loan that starts you off with a lower fixed interest rate for a set number of years, after which a variable rate that changes based on market conditions applies. The chart below shows the minimum down payment required for various types of mortgages: Mortgage type Keep in mind that this is the minimum amount you'll need to come up with if you want to buy a home and move when money is tight. While the average down payment amounts are worth exploring, you may also want to note the minimum down payment required for different types of home loans. For repeat buyers, however, the average home down payment was around 17% last year. The NAR points out that the average first-time home buyer has made an average down payment of 6% to 7% since 2018. Ultimately, this means someone trying to save up a 5% down payment would have needed $13,315 for the average home in January of 2020 but $17,950 just three years later.Īnd that's just for people trying to save up a 5% down payment, which is a little less than the average down payment most people come up with. In fact, National Association of Realtors (NAR) figures show that the median sales price for existing homes came in at $266,300 in January of 2020 before climbing up to $359,000 in January 2023. ![]() ![]() ![]() Unfortunately, that's the exact situation homebuyers of all age groups are in right now. Saving up a big enough down payment to purchase a home is hard enough, but things only get worse when housing prices continue climbing year after year. ![]()
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