Although, the amount you should put down on a down payment for a house varies based on location, the most common number is anywhere equal to or under 20% of the total cost of the home. States such as New York or California typically have higher percent average down payments (around 19-20%) because the price of homes is relatively steep. On the other hand, the average percent in states such as Mississippi or Wisconsin is around 12-14% of the total cost of the home. I would advise not to pay more than 20% because you may end up paying more for your home altogether. This is because interest rates and the price of housing is rising and your nominal value will be the same but the real value of the home, which is adjusted for inflation, will be much higher and you will actually end up paying a lot more money.
You also have to take into account the value of the home in the future when deciding how big your down payment should be. If you know that the value of the home will rise faster or equally to the pace of the market, then it is okay to put down 20% of the cost of the home because you won't be losing any money and will most likely get a solid return on your equity. If the value of the property is not able to keep up with the overall housing market, then you will end up losing money on the value of your home due to inflation and interest rates. Inflation is a general increase in prices and the general falling of the purchasing value of money. Interest rates are the proportion of the loan that is charged as interest to the buyer. So by taking these two variables into account you can make a more educated decision when making a down payment on a home.
Also think about the future when making a decision on your down payment because a higher percent down payment means less monthly payments in the future as well as potentially better loan opportunities in the future and possibly not having to purchase mortgage insurance.
My advice would be to talk to lenders about the types of loans you can get on a home you are looking at and compare them to get the best value for your money.
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