Down Payment Myth Debunked
Posted by Rachel Verdone on
Home Buying Myth Debunked: You Don't Need 20% Down to Buy a Home in Bozeman
One of the most common things we hear from prospective homebuyers in Bozeman is, "We're waiting until we have 20% saved for a down payment." It's a familiar sentiment — but one that often leads to unnecessary delays in achieving homeownership. But here's the truth: You don't have to wait. And honestly? In a growing market like ours, waiting could end up costing you more.
Where the 20% down myth comes from
This idea stems from an old-school rule of thumb: put 20% down to avoid something called Private Mortage Insurance, or PMI.
So what is PMI, exactly? Private Mortage Insurance is a type of insurance that protects the lender—not you—if you stop making payments on your…
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