Video: Mortgage Down Payment Amounts

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Most home loans require a three percent down payment. Learn how to obtain a mortgage in this free personal finance video from a loan officer and mortgage closing specialist.

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Video Transcript

Average loans and lenders require that homeowners put at least 3% down towards the purchase of their home. There are some mortgage programs that fund at 100% that don't require any down payment, but these typically have a higher interest rate, and you have to meet certain eligibility requirements. Placing a down payment of 20% or more can be hugely beneficial. It can lower your monthly mortgage payment as much as $100 a month because you're going to avoid what's called "Private Mortgage Insurance". Private mortgage insurance is insurance that lenders require if homeowners haven't made any investment towards the purchase of their home. It's basically there for the protection of the lender and the borrower. There are some exceptions to the private mortgage insurance policy. Many government backed loans will waive this requirement, it's best just to check with your lender to see what offers they have.

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Mortgage Down Payment Amounts

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