Mortgage Down Payment
The Contract Should Include:
The amount of the down-payment on a home is most often dictated by what is required, but if you have more available should you increase your down-payment?
While the minimum downpayment permitted is 5% of the purchase price of the home, it is always best to put as much as possible towards the purchase. The more you put down, the lower the mortgage, resulting in a lower, easier to manage payment.
If you are able to contribute 20% or more of the purchase price you will avoid paying a mortgage insurance fee. While this fee is not an out of pocket expense, it will add between 0.50% and 3.10% to your mortgage balance.