Thus, the amount of down payment that you need to save depends on two factors: the purchase price of the home you are purchasing and the percentage required by the lender to pay upfront. The larger your down payment, the monthly mortgage payment and the smaller will be.
A big advantage of paying at least 20% down is that you do not have to pay private mortgage insurance (PMI). This is an additional monthly fee you have to pay to protect the lender in case you default or non-payment in accordance with the agreements. However, you can cancel the PMI when you pay down your mortgage so that you have at least 20% equity in your home.
For this reason, paying 20% down is the gold standard. But for many people, coming up with that kind of money is about as easy as running an ultra marathon in the desert. My advice is to not let the 20% rule makes you a home owner if you find an affordable property that will be a good long-term
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