I just saw that the average down payment in my city is way lower than I thought

I was looking at a report from the local real estate board and it said the typical first time buyer here puts down 8%. I always heard you needed 20% to even get started. This was from data for the last six months in Portland. It makes me wonder if I've been saving too much before even looking. Has anyone else bought a place with a down payment under 10% recently?

3 comments

3 Comments

williamb291mo ago

Yeah, that 8% number is the real kicker. People forget that number includes all the first time buyer programs and FHA loans. The catch is your monthly payment gets way higher with mortgage insurance tacked on.

elliot_thomas821mo ago

Tell me about it, @williamb29. My first place was an FHA loan and that mortgage insurance felt like just throwing money away every month. It stings knowing you're paying extra just for the privilege of a smaller down payment. Really makes you run the numbers on whether waiting to save more is worth it. The advertised rates never tell the full story of what you'll actually pay.

averymartin1mo ago

Seriously, run the numbers with the full payment including PMI. Sometimes it's still worth it to get in the door.