How much down payment is normally required to buy a home?
There are mortgage options now available that only require a down payment of 5% or less of the purchase price. Mortgages with less than a 20% down payment generally require a private mortgage insurance (PMI) policy to secure the loan.
For example, if you pay 10% down on a $100,000 loan, PMI might cost you about $40/month or $480/year. However, the actual rate is based on various factors including the size of the loan, the amount of the down payment, and your individual lending institution. The only way to find out the exact amount is to contact your lender directly.
USC Credit Union offers loans that meet almost every mortgage need and the expertise to advise you on everything from points to property insurance. Whether you’re a first-time home buyer, ready to refinance or want to use the equity in your home, you can rely on us to guide you home.
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