Down Payment on a House: How Much Do You Really Need?
What is a down payment?
A down payment is the cash you pay upfront to make a large purchase, such as a home. You use a loan to pay the rest of the purchase price over time. Down payments are usually shown as a percentage of the price. A 10% down payment on a $350,000 home would be $35,000.
When applying for a mortgage to buy a house, the down payment is your contribution toward the purchase and represents your initial ownership stake in the home. The mortgage lender provides the rest of the money to buy the property.
Lenders require a down payment for most mortgages. However, some types of loans backed by the federal government may not require down payments.
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