How Much Should I Save For A Down Payment?
Speaking of budget, the question to ask is: How much do I need for a down payment? If you have the money, the answer is 100%. It’s always a good move to buy in cash or put down as much money as possible to avoid a monthly mortgage that follows you around forever. Don’t worry about losing the tax write-off or whatever your broke friends tell you is a “sophisticated” financial move. Trust us, the math won’t work in your favor.
If you are getting a mortgage, aim for at least a 20% down payment. That way you can avoid paying for private mortgage insurance (PMI). If that’s not possible, don’t put down any lower than 10%. Otherwise, you’ll be killing yourself with extra interest and fees. Do you save any down payment before buying a home?
