20 Percent is Magic

When contemplating the prospects of getting a home loan, you should know the 20 percent figure is magic. What are we talking about? The down payment. If you put down 20 percent, the lenders are much more comfortable because you are putting your money where your mouth is. If you default on the loan, there is a 20 percent cushion for the lender to maneuver in to get their month back through a foreclosure sale.