QHow Much Money Will I Need For A Down Payment And Closing Costs To Purchase A Home?
AGenerally, lenders expect you to be able to make a down payment of at least five percent of the house's price and to pay closing costs, which are often three to four percent of the loan amount. If you make a down payment as little as five to twenty percent, the lender will require you to pay for private mortgage insurance (PMI). If you make a down payment over twenty percent, you will not be required to pay for private mortgage insurance. Under the Federal Real Estate Settlement Procedures Act, the lender must provide you with information on known and estimated closing costs. (Requirements for VA or FHA loans may differ.)