The Williams family has decided to purchase a new home. Approximately what percentage of the total cost of the home should they plan to pay as a down payment for the home?

Question

Responses

30
30

15
15

10
10

20

Answer 1

The typical percentage for a down payment on a home can vary, but a commonly recommended amount is around 20%. This percentage helps avoid private mortgage insurance (PMI) and provides a stronger equity position. However, some buyers may put down 15%, 10%, or even 5%, depending on their financial situation and loan options.

Based on standard practices, the best response for a typical down payment would be 20%.