Saving up for a down payment is a key step for buying a house. That down payment will be put on the closing table, and it serves insurance for your lender. A nice size of a down payment reduces your monthly house payment, allowing you to have a shorter mortgage term so you can get rid of your debt sooner rather than later. To see how much money you will need to put down, plan to spend no more than 25% of your monthly take-home pay on your mortgage payment. There are online calculators to help you set up this formula, including the total house price and the approximate monthly payments.
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