Feb. 7, 2018
Homeownership has long been the American Dream, but for many workers, that goal has been largely unattainable of late. That's why it's encouraging to hear that a large chunk of renters might soon move over to the ownership camp. Specifically, roughly 32% of Americans plan to buy a home within the next five years, according to a newly released NerdWallet study. But while there are certain advantages to owning a home, there are also some pitfalls you'll want to avoid. Here are just a few things you ought to know if you're aiming to buy a home in the not-so-distant future.
1. You should aim for a 20% down payment
These days, you don't necessarily need to come up with a 20% down payment to buy a home -- but you're better off doing so nonetheless. Not only will putting down 20% help minimize the interest you pay on your loan, but it'll also help you avoid private mortgage insurance, or PMI, which will only make your mortgage more expensive.