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How Much Should You Put Down on My New Waltham Home?

The right down payment depends on your financial situation.  Deciding how much to put down on a new house depends on balancing liquid cash with other priorities, but economic conditions related to Covid-19 and a hot housing market have added twists.  Due to the nationwide sellers market, offering a large down payment could make it easier to win a bidding war because it improves your chances of getting approved for a loan. 

How Much of a Down Payment is Typically Required When Buying a House?

If you are wondering what percentage you should put down on a house, 20% down is the rule of thumb, but there is no one size fits all figure.  For example, some loan programs require a down payment of  as little as 3% or 5% and some do not require one at all.  The primary reason most consider 20% is if you have a conventional loan to avoid private mortgage insurance.  However, according to the National Association of Realtors around 72% of homebuyers put down less than 20%.  

What is a Good Down Payment for My Waltham Home?

There is no right amount for everyone to have set in their mind when it comes to down payments, it will ultimately come down to your own budget.  However, there are some guidelines to consider what you are planning to put down should be in line with your monthly housing budget, your loan program, your liquid cash, and your plan for the home moving forward.  The larger your down payment, the lower your monthly mortgage payment.  While 20% is a good rule of thumb there are other options for lower down payments.  

The reality of it is that most homebuyers pay much less than 20%.  The median down payment in 2019 was 12% for all buyers, 6% for first time buyers and 16% for repeat buyers.  Having a professional Waltham real estate agent can assist you with the down payment process in order to set you up with an easy buying process! 

How Can You Decide How Much to Put Down?

Among other aspects, your finances and your goals for the home help you choose the right down payment.

Here are some questions to consider :

  • Will your new house require upgrades or updates?

  • Are you handling a lot of other debts?

  • How secure is your job?


Only you and assistance from your Waltham realtor can help you determine the appropriate down payment.  


Putting down a larger down payment will ultimately have you paying less per month on your mortgage.  When considering your budget for your down payment you should consider private mortgage insurance, interest costs, emergency funds, and closing costs.  These are all aspects that need to be considered to not bleed your bank account dry before even getting started with your new Waltham home.  This all might be a giant headache to most when trying to dissect the buying process, but a well experienced Waltham real estate agent will be able to thoroughly communicate each step with you in order to set you up for success!

Contact Hans Brings Today!

No matter if you are a fresh first time home buyer or are looking to move on to your next property Hans has the market knowledge needed in order to guarantee a smooth transaction.  Get assistance from someone with years dealing with the Waltham housing market today!  Get a hold of Hans by giving him a call at 781-891-9993 or by filling out a contact form on the website. 

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