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One of the biggest challenges when buying a home is deciding how much to put down.

You should make as large of a down payment as possible. Not only will it make the home cost less, here are 6 more reasons.
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6 Reasons to Make a Larger Down Payment

Published on Nov 19, 2015

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1.

6 Reasons to Make a Larger Down Payment

One of the biggest challenges when buying a home is deciding how much to put down.

You should make as large of a down payment as possible. Not only will it make the home cost less, here are 6 more reasons.
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2.

Easier Approval

A large down payment signals borrower strength and shows lenders you know how to save.

You're more likely to be approved with a large down payment.
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3.

A Lower Interest Rate

Your loan-to-value ratio will be lower, usually resulting in a more favorable rate from lenders.

Lower rates can save you significantly over the life of the loan.
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4.

Lower Monthly Payments

Who doesn't want lower monthly payments?

A bigger down payment means a smaller mortgage, hence a lower payment.
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5.

Be Mortgage-Free Sooner

Paying more upfront makes you more able to pay off the entire mortgage in less time.

Paying off a mortgage early can help you be better prepared for retirement.
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6.

No Mortgage Insurance

If you're putting down more that 20% lenders are not likely to require private mortgage insurance.

This is a premium you can avoid with a high down payment.
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7.

Protection from Negative Equity

Home values can fall the same way they rise. By having more of your home paid off you minimize the likelihood that a decline will put you in a negative equity situation.
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