The size of a homebuyer's down payment can make the difference between an affordable monthly mortgage payment and one that squeezes a household's budget, Zillow, a real estate and rental marketplace, reported Friday.
A 20% down payment on a home's purchase price is a longstanding benchmark, Zillow said. This keeps monthly payments lower, saves on interest and negates the need for costly mortgage insurance.
Forty-three percent of buyers — of whom 42% are millennials, the largest contingent — put down 20% or more, according to Zillow's analysis of homebuyers nationally and in five major metropolitan areas: Atlanta, Chicago, Washington, D.C., Phoenix and San Francisco.
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Michael S. Fischer
Michael S. Fischer is a longtime contributing writer for ThinkAdvisor. He previously reported on trade and intellectual property topics for the Economist Intelligence Unit and covered the hedge fund industry for MARHedge and Reuters News Service.
