3 Reasons for putting 20% down when Buying a Home in Fort Lauderdale One of the biggest obstacles that a first-time homebuyer must overcome is having the necessary funds for a down payment. Most first-timers are under the impression that putting 20% down of a home’s cost is an unwritten requirement. However, this isn’t always the case. Although you can put down as little as 3.5% (depending on your financial situation, a down payment of 20% provides a number of benefits. Here are 3 reasons putting 20% down on the home you want to buy: You’ll be starting out with more equity – this will protect you if your home’s value decreases. Putting down a smaller amount could result in owing more than the value of your home should market prices decline. Your loan principal will be lower – putting 20% down means you’ll only be financing 80% of the cost of the home. Consequently, your monthly payments will be lower and you’ll have a smaller principal to pay off. Your overall costs will be lower as well – borrowing less means paying less interest over the term of the loan since it is being calculated on a smaller amount. Best of all, a 20% down payment eliminates having to pay PMI or private mortgage insurance. Florida State Mortgage Group, Inc. 1512 E Broward Blvd #204A, Fort Lauderdale, FL 33301 Mon-Fri 9am-5:30pm Sat:10am-3pm Sun:10am-2pm https://www.google.com/maps?cid=5464149498827190981