 TITLE: How Far Will Your Salary Get You When Buying a House? CONTENT: How Does Your Down Payment Affect Mortgage Affordability?\n---------------------------------------------------------\nYour down payment plays a big role in your mortgage's affordability. The size of your down payment affects the amount of the monthly payment you'll be making to cover the rest of the mortgage amount; a bigger down payment decreases your monthly payment and vice versa. So, if you're worried about your DTI affecting your mortgage eligibility, coming up with a larger down payment can help you qualify.\nFor example, if you're buying a $250,000 home with a 4% interest rate over 30 years, a $20,000 down payment would give you a monthly principal-and-interest payment of $1,098. But if you put down $40,000, your monthly payment would drop to $1,003—and you'd also save nearly $35,000 in interest over the life of your loan.\nWhile a 20% down payment is a standard recommendation from mortgage experts, it's not a requirement. In fact, many lenders allow down payments as low as 3% or 5% of the loan amount.\nIf you don't have a lot of cash for a down payment and you're a first-time homebuyer, there are several programs and grants that can provide you with down payment assistance or even loans with no down payment requirement.\nConsider more than just your monthly payment as you decide how much money to put down. For example, if you drain your savings for a down payment, you could experience some difficulties if you have a financial emergency in the near future.\nOn the other hand, if you put too little down and housing prices drop after your purchase, you could end up upside down on your mortgage loan, which can make it challenging to move or sell the home. END