← All Market Insights

What Is a Down Payment? How It Works and How Much You Need

With median U.S. home prices over $400,000, most buyers finance purchases with a down payment, typically averaging 9% for first-timers. Down payments affect mortgage rates, monthly payments, and insurance costs. Larger down payments reduce interest and avoid mortgage insurance but may deplete savings. Funding options include savings, gifts, assistance programs, home equity loans, and retirement funds. Balancing down payment size and cash reserves is crucial.

Continue to full article

Have questions about this topic?

Call (626) 649-1289 for plain-English answers about your home loan options.

Discover more from Radlam Thai - The Mortgage Guy

Subscribe now to keep reading and get access to the full archive.

Continue reading