$5K down payments
Big down payments aren’t required to buy a home. In fact, according to a new survey, a large swath of homeowners paid less than $5,000 for theirs.
Say goodbye to big down payments
According to a new survey from Freedom Debt Relief, more than a quarter of American homeowners is currently paying for private mortgage insurance. Of those homeowners, nearly half put less than $5,000 down.
Out of all homeowners, 13 percent made no down payment at all, while 28 percent put 5 percent or less down.
Before making a 20% down payment, read this
Millennial homebuyers were even more likely to pay a low down payment. Nearly 70 percent of all Millennials said they paid 10 percent or less. Members of the Silent Generation are the most likely to put down a big down payment, with almost a quarter putting down 26 percent or more.
Hidden homeownership surprises
Though buyers are often shocked to find that 20 percent down payments aren’t a must, new homeowners say the money-related surprises don’t stop there.
More than half of recent homebuyers say they’ve been surprised by the maintenance costs that come with owning a house. Another 36 percent were surprised by their property tax bill, while 57 percent say emergency and unexpected repairs were the biggest shocks.
Fortunately, more affordable mortgages seem to make these costs more manageable. The survey showed that 60 percent of homeowners spend less than 30 percent of their monthly income on their mortgage.
Half of renters spend more than 30% of their income on rent
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