11 Jan The Bibel Team: Is 20 Percent Down Really Needed?
Nate: What’s going on guys? Nate Bratlien, from the Bibel team at NEO Home Loans, coming at you today with a question that we get asked all the time. Do I need 20% down when applying for a mortgage? Quick answer to that question is a resounding no. There are many loan products out there that offer down payment percentages as low as 0%, 3%, even 5%. And the sky’s the limit in between.
Current research has come out that the national average in the last five years for a down payment percentage was right around 12%. So you can see that the old days of your mom and dad’s mortgage, grandma, and grandpa having to scrape up 20% to get one, those days are long gone. In that same breath, we do recommend saving up as much as you can for a down payment, because overall, having a lower loan amount and a lower monthly payment does benefit you as a borrower. However, that mindset of, I need 20% or nothing, can kind of be detrimental to you as a borrower in the sense that you could potentially be missing out on loan products that you could qualify for right now.
You know, we highly recommend speaking with a mortgage professional, someone you can trust, someone like us on the Bibel team that even through just a quick 10 to 15 minute phone call could really help just dive into your specific scenario and potentially open up doors that you might not have even thought existed. If you want any more information or you have any questions on what I’ve gone over today, please give us a call. We’d be happy to help.