Don’t let the down payment get you down
Struggling to save for a down payment? You might be in luck. According to new data, average down payments are decreasing across the country — particularly in the South.Verify your new rate (Aug 6th, 2020)
Down payments going down
According to data from LendingTree, the average down payment on 30-year fixed-rate loans dropped nearly 10 percent in the third quarter of 2018, decreasing from $52,480 to $47,265.
At the same time, the average down payment percentage remained about steady, while the average mortgage loan amount fell by almost $28,000.
“This is good news if you are looking to buy, as it means that you will need to save less money for a down payment,” said LendingTree’s chief economist Tendayi Kapfidze. “If high down payments have deterred you from buying a home in the past, now might be a good time to reconsider your options.”
Where down payments are least expensive
The analysis also revealed where down payments are lowest. According to the data, Alaska has the lowest down payment by percentage, at just 15 percent of the purchase price. West Virginia has the lowest down payment by amount, with an average of $21,415.
Arkansas has the second-lowest nominal down payment at $21,707, while South Dakota took third with $22,149. Mississippi, Nebraska, North Dakota, Kentucky, Alabama, Oklahoma and Maine round out the top 10.
The highest down payment, both in amount and by percentage, is required in California. Buyers pay an average of 22.44 percent and $97,809 for their down payment in the state. Washington, D.C., and New York also have high average down payment averages at over $90K each.Verify your new rate (Aug 6th, 2020)
Get today’s mortgage rates
Looking to buy in one of these low-down payment markets? Then shop around and see what mortgage rates you qualify for today.Verify your new rate (Aug 6th, 2020)