Home prices are still high despite signs of a cooling market.
Over the past year, the average down payment in the country's 50 biggest metros has grown by more than a third.
While high home prices and interest rates may push some buyers to the sidelines, those still in the market may have more resources if they downsize.
The last chance to get interest on Series I bonds is October 28.
The metros with the largest down payments are listed.
The five metros that have had the highest down payments are:
These metros have higher average mortgage rates and household incomes. Yearly earnings are represented by these down payments.
The lower your costs are, the more you can afford to put down.
He said that a larger down payment helps offset the cost of rising interest rates.
While certain types of mortgages allow down payments as low as 3%, you will have to pay mortgage insurance on loans with less than 20% down, and you may see higher interest rates.
For loans with a 20% down payment, the average interest rate is above 7%.
He said that more is generally better because it lowers your costs.
According to a report from the National Association of Realtors, in the year 2021, the median down payment was 13%, with 4 in 10 using proceeds from a previous home sale.
With many buyers struggling to put 10% or 20% down, home prices are still significantly higher than two years ago.
During the third quarter of 2020, the median home sales price was $337,500, but in the third quarter of 2022, it was $464,900.
She said that many buyers take advantage of the lower down payment options.
It costs more with a smaller down payment. It is the only way many people can afford to live.
Home buyers may be able to reduce their expenses in the future if they downsize their down payments. When interest rates go down, there may be a chance for buyers to get rid of mortgage insurance if they reach 20% equity in the house.
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