The down payment is a portion of the cost of the home; it’s the difference between the purchase price and the mortgage amount, plus any closing costs. The more money you can put into your down payment, the lower your mortgage will be and the lower your monthly payment will be.
What amount of down payment is required?
The minimum down payment required depends on the loan program you select. Most lenders offer mortgages with various down payment options, including low down options like FHA. Many loans require 10 – 20% of the purchase price. The largest determining factor of the down payment amount will be your credit score.