Should You Actually Put 20% Down On Your Home?

Let’s Talk About What Really Makes Sense for You

If you’re getting ready to buy a home, chances are you’ve heard the age-old advice: “You should always put 20% down.” But is that really the best move for everyone? Let’s break it down together and explore what might actually work best for your financial goals.

💰 The 20% Down Payment: The Traditional Approach

Putting 20% down on your home has some clear benefits:

• No Private Mortgage Insurance (PMI): PMI is usually required when you put down less than 20%. Skipping PMI can save you hundreds of dollars every month.

• Lower Monthly Payment: A larger down payment means you’re financing a smaller loan, which typically leads to lower monthly payments.

• Faster Equity Growth: You’ll own more of your home from day one and build equity more quickly.

• Stronger Offer: In competitive markets like San Diego, a bigger down payment can help your offer stand out to sellers.

Sounds pretty good, right? But let’s look at the other side.

💡 Less Than 20% Down: A Smart Move for Many Buyers

If you choose to put less than 20% down, it’s not necessarily a bad thing—in fact, it can offer more financial flexibility.

Here’s why:

• Keep More Cash on Hand: You’ll have more money left for emergencies, home improvements, or to invest in high-yield savings accounts or retirement.

• Get Into a Home Sooner: Waiting to save a full 20% could mean missing out on a great home or dealing with rising prices and interest rates.

• Competitive Loan Options: Today’s lenders offer low-down-payment options with reasonable PMI costs, and in some cases, special programs can reduce or eliminate PMI altogether.

🔄 The Lump Sum Payment Strategy: The Best of Both Worlds?

Here’s a tactic many buyers don’t think about:Start with a lower down payment (say, 10%), then make a lump sum principal payment after closing.

This can help you:

• Reduce your loan balance quickly

• Lower your interest paid over time

• Potentially remove PMI sooner

This gives you flexibility in the short term while still taking advantage of long-term savings.

🏡 What’s the Right Strategy for You?

The truth is, there’s no one-size-fits-all answer.

Your best move depends on:

• Your comfort with monthly payments

• Your other financial goals

• How competitive your local market is

• Whether you have access to special loan programs (like VA or doctor loans)

As a Mortgage Loan Officer with over 20 years of experience helping buyers just like you, I can help you weigh your options, crunch the numbers, and choose the strategy that truly fits your life.

💬 Let’s Chat!

Whether you’re a first-time buyer or looking to upgrade, I’d love to help you explore your financing options.

Reach out today, or send your questions to my email—I’m here to help you make smart, confident home-buying decisions.

📞 Contact:

Desiree Lowe | The Lowe Team

Trusted Mortgage Advisor | Top 1% Nationwide

Let’s make your home dreams happen!