You Do NOT Need 20% Down (Please Stop Waiting for That)
If I had a dollar for every renter who said:
“I’m just waiting until I have 20% down…”
I would have 20% down on another house.
Let’s lovingly retire this myth.
Where Did 20% Even Come From?
20% down avoids private mortgage insurance (PMI). That’s it.
It’s not a requirement.
It’s an option. It’s good to know your options!
And most first-time buyers in West Michigan are NOT putting 20% down.
Many are putting:
3%
3.5% (FHA)
5% conventional
And moving forward.
Example Time (Because Math Is Less Scary Than Assumptions) Let’s look at the facts.
Let’s say you’re looking at a $325,000 home.
5% down = $16,250
Is that money? Yes.
Is it $65,000 (20%)? No.
Waiting for 20% while rent keeps rising can cost you more in the long run than a small PMI payment ever would.
But What About PMI?
PMI is not the villain TikTok makes it.
It often ranges from $50–$150/month depending on loan type and credit.
And once you build equity? It can be removed.
Here’s the Real Question
Are you waiting because it’s financially wise?
Or because it feels safer to delay? Because continuing to rent feels safer, and less scary because you already know it?
There’s no shame in renting.
But if 20% is the only thing stopping you…let’s talk numbers before you wait 5 more years.
Let’s talk real numbers for a $325,000 home in Michigan
If you put 5% down ($16,250), your loan would be about $308,750.
With current interest rates, here’s a rough breakdown of what your monthly payment could look like:
Principal & Interest: ~$1,950 – $2,050/month
➕ Property Taxes: ~$300 – $450/month
➕ Homeowners Insurance: ~$80 – $150/month
Estimated total monthly payment: $2,350 – $2,650/month
That means for roughly what many people are already paying in rent, you could be building equity in your own home instead of paying someone else’s mortgage!!
Ready? Send me an email. Remember, this is a NO PRESSURE ZONE!!
Deb Oliviara
Deb.Oliviara@CBGreatLakes.com
(231) 903-3287 Text only, please
