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Personal Finance > Mortgages & Home Loans Down payment basics for home buying

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How much should your down payment on your new house be? At LEAST 20%. With current lender practices, you will pay $1000s of extra dollars for the 'privilege' of buying a house without 20% down. For a $250,000 house, you would need $50,000 down. That's a lot of money! Start saving your pennies, cutting coupons, and stop going out to eat. If you don't have 20% down, your lender will require you to obtain private mortgage insurance (PMI). This insures the lender in case they have to repossess the home and sell it for any reason. PMI can cost anywhere from 0.2% to 0.9% of your loan value per y...

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