4 min read
In this article
- Down Payment Amount
- Down Payment Percentage
- Average Down Payment
- Earnest Money
Ideally, the down payment on any new home purchase should ideally be at least 20%, although recent changes in lending have resulted in lower requirements. It’s always a good idea to consult with your mortgage lender to determine how much you will need to put down. Traditionally, a required down payment amount has ranged between 10% and 20%, but with new loan programs, necessary down payment amounts are changing.
Down Payment Amount
The down payment amount you’ll need for a $350K house depends on your lender’s requirements as well as your individual circ*mstances. Some people have zero down payment requirements, while others can pay as little as 3% or 5% of the sales price. Putting down the standard 20% can help you avoid paying mortgage insurance and interest and could save you thousands of dollars. So you can expect to pay between $10,500 an $70,000 as a down payment on a $350,000 purchase. Keep in mind, on top of the down payment amount, you will also have to factor in the closing costs.
Almost all lenders require a down payment. The amount can vary, depending on your income, credit score, and the type of loan program you’re applying for. Banks typically use a Vantage score while FICO scores are used by most other lenders. If you’re unsure which method a particular lender uses, you can contact the lending institution and ask how much of a down payment they expect.
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To determine your ideal down payment you must first determine your budget. The best way to calculate how much you can afford each month, review your credit card and bank statements. Based on your findings you should have a good idea of how much home you can afford, this will give you a range of your potential down payment amount. It is important to have a minimum down payment percentage, regardless of the type of loan you’re getting.
Using a closing cost calculator is the best way to determine approximately what you will have to bring to the table on closing day.
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Down Payment Percentage
The down payment percentage for a $350K house varies, and is determined by your individual financial situation and mortgage plan. Some people are able to put nothing down, while others will need to put down at least 3%. However, many lenders prefer that you put at least 20% down, which can save you thousands of dollars in mortgage insurance and interest. The percentage that you put down will be based on the type of loan you qualify for. Here is a quick table with different down payment percentages for a $350,000 mortgage.
| Down Payment Percentage | Down Payment Amount |
|---|---|
| 3% | $10,500 |
| 5% | $17,500 |
| 10% | $35,000 |
| 15% | $52,500 |
| 20% | $70,000 |
The Home Buying Institute recommends putting down 20% or more. However, the amount you can afford depends on your financial situation and your location. While you should be prepared to make a down payment that you can afford, you should always have an estimate on hand. A down payment is the most significant expense during the home-buying process. In addition to the down payment, you will have to pay closing costs, such as lender’s title insurance, mortgage points, and an appraisal or survey fee.
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