🏡 What is a Down Payment?     A down payment is the initial amount of money you pay upfront when purchasing a home. It's your stake in the property, while the rest of the purchase price is typically covered by your mortgage loan.   Example:   Home price: $300,000 Down payment: $30,000 (10%) Mortgage loan: $270,000         💵 Why Does it Matter?     Reduces the loan amount you borrow. Shows lenders you're invested in the property, lowering their risk. Impacts your monthly payment — the more you put down, the smaller your mortgage. Can eliminate extra costs like mortgage insurance if you put enough down.         📊 Typical Down Payment Amounts   Conventional loans: Often 3%–20% FHA loans: As low as 3.5% (with credit score requirements) VA & USDA loans: May require no down payment for eligible borrowers 20% Down Rule: Traditionally, putting down 20% means you avoid private mortgage insurance (PMI)         ⚖️ Pros & Cons of a Larger Down Payment     Larger Down Payment ✅ Lower monthly payments ✅ Lower interest rates possible ✅ Avoid PMI at 20% or higher ❌ Ties up more of your cash   Smaller Down Payment ✅ Easier entry into homeownership ✅ Keeps more cash available for savings, emergencies, or home repairs ❌ Higher monthly mortgage payments ❌ Often requires PMI or FHA Mortgage Insurance     👉 In short: The down payment is your first financial step into owning a home. The size of it affects your loan, your monthly payment, and your long-term costs.     House Keys is brought to you by  Mountain Retreat Realty Experts https://mtnretreatrealty.com   House Keys is produced by Birdman Media™  This Episode is additionally supported by the support of the following sponsors Buffalo Bills Tavern and Museum / Buffalo Nickel Brewery and Grill        

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