Waiting to save 20% down can mean a smaller monthly mortgage payment when you do buy, but the rent payments you make during that time don’t build equity – and you can’t predict how interest rates, home prices and housing availability will change while you save.
But how do you figure out what makes sense for you? Don’t worry; we made a calculator for that. With a little info about your current rent and savings, plus some guesses about the home you might want to buy, you can explore your financial options.
That’s one of those questions more easily asked than answered, and one that depends on your target home price.
A smaller down payment allowed one experienced homebuyer to reserve cash for renovations – both surprise and planned.
We're not talking about a crisp 20 dollar bill in a birthday card from Grandma.
