Buying a home or condo with 20 percent down is easier said than done, especially in a major market like Chicago. But the good news for active home buyers is that more and more Americans are finding other ways to purchase a home that doesn’t involve spending a decade or more saving for a down payment.
According to a recent survey mentioned in Business Insider, the majority of Millennials are planning to put down less than 20 percent when buying a home in 2020, and the National Association of Realtors also found that a whopping 76 percent of Americans who bought a home in December also put down less than the previous norm of 20 percent.
There’s no doubt we’re seeing a shift in how real estate purchases are financed and if savvy home buyers can secure a place where home values are on the rise, putting less down and paying for private mortgage insurance is probably worth it, according to most industry experts.
It’s certainly worth noting that being able to put 20 percent down on a place has its advantages, especially if you’re hoping to get the lowest interest rate possible. But if a lower down payment ultimately leads to a savvy investment and the ultimate goal of home ownership, starting to build equity sooner rather than later is always the best scenario, even with the higher monthly payment in the beginning.