A down payment is usually what percentage of the asking price of a home? 1. 0-5 percent 2.5-20 percent 3. 20-50 percent 4.50-75 percent

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Addison Cohen

15 February, 04:35

A down payment is usually what percentage of the asking price of a home? 1. 0-5 percent 2.5-20 percent 3. 20-50 percent 4.50-75 percent

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Ivy Cooke · Answer 1

A down payment is the sum of money you spend straight to acquire a home and is typically combined with a home loan to achieve the total purchase price of a home. In addition your down payment amount, credit history, your credit score, total debt and annual income will affect how much of a loan you can be eligible for. The greater your down payment, the lower your monthly mortgage payment will be. The amount required for a down payment is determined by on your loan type. Normally you will need 5 to 20% of the sale price in cash in order to meet the requirements for a conventional loan.