Down payments on Mortgages

A key to getting a lower rate on your mortgage is making a large down payment. A large down payment of 20% or more will make it easier to obtain a mortgage. You need to plan ahead and start aggressively saving money for a down payment. Personal savings, pension plan funds, sales of investments or other assets, and assistance from relatives are common sources of down payment money. Parents can help their children purchase a home by giving a cash gift or a loan, depositing money with the lender to reduce the interest rate on the loan cosigning, or acting as comortgagors.