Determining the Ideal Home Down Payment: A Common Dilemma

down payment One of the most frequent questions I encounter during initial client consultations is a seemingly straightforward yet complex one: “How much should I put down on my house?” While a perfect world scenario might suggest a 20% down payment for a comfortable monthly payment, reality often presents a more nuanced situation. There are instances were putting down more can reduce your monthly payment, while other circumstances might favor a smaller down payment to maintain cash reserves.

It’s worth noting that many clients who initially plan substantial down payments often reconsider their approach after exploring alternative options. Take, for instance, a recent client who purchased a home in Northville. Rather than investing a significant portion of his down payment into the house, he chose to put that money to work making the improvements to the home that he would otherwise not be able to afford. The additional monthly payment, even though less than maybe desired, was rather insignificant considering the cost of alternative financing for the renovations.

If your concern revolves around putting down less than the conventional 20%, don’t fret. Depending on your unique circumstances, it can be a sensible choice. Whether you want to maintain cash reserves or simply lack the 20% down payment, numerous loan programs cater to your needs.

Ultimately, the right down payment is the one that aligns with your comfort level and financial situation. However, if you seek guidance, it’s advisable to consult with a qualified mortgage professional. They can provide valuable insights and help you make an informed decision.

If you have questions about determining the optimal down payment for your new home, please don’t hesitate to contact me. I’m here to assist you in finding the approach that best suits your circumstances.


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Ross Mortgage Corporation


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Marc Edelstein - Ross Mortgage Corporation
7151 N Main
Clarkston, MI 48346

(248) 658-2643