Ready to Move Up but Wondering How to Make Your Next Home More Affordable?
Using your current home’s equity for a larger down payment can be a game-changer!
According to the latest data from Redfin, the typical down payment for U.S. homebuyers is $67,500—that’s nearly 15% more than last year, and the highest on record. But don’t let that alarm you! If you can leverage the equity you have in your current home to provide a larger down payment there are huge benefits including;
1. Borrow Less Save More
A bigger down payment means borrowing less, reducing the total interest you’ll pay over time and saving money in the long run.
2. Lower Mortgage Rate Potential
A substantial down payment signals financial stability, which can help secure a lower mortgage rate and further amplify savings.
3. Reduced Monthly Payments
With a smaller loan amount, monthly payments can be more affordable, adding flexibility to your budget.
4. Avoid Private Mortgage Insurance
Putting down 20% or more eliminates PMI, a monthly cost required for smaller down payments, helping you save on monthly expenses.
