{"id":19027,"date":"2020-09-30T12:43:31","date_gmt":"2020-09-30T19:43:31","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=19027"},"modified":"2020-09-30T12:43:31","modified_gmt":"2020-09-30T19:43:31","slug":"buyer-average-down-payment-on-a-house","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-average-down-payment-on-a-house\/","title":{"rendered":"I\u2019m Ready to Buy: What\u2019s the Average Down Payment on a House?"},"content":{"rendered":"

You’ve finally got that promotion at work, and you think it’s time to seriously start thinking about buying a house. But when you start doing your research, you worry that actually, you might not be ready at all. What’s this about needing 20% of the home price as a down payment<\/a>? That’s tens of thousands of dollars in most markets, and hundreds of thousands in others!<\/p>\n

For years, many people looking to buy a home have been under the impression that doing so required a 20% down payment. For most people, saving up a 20% down payment on a house seems daunting at best, and downright impossible at worst.<\/p>\n

In Q4 2019, the median home price was $324,500<\/a>, and that\u2019s more than $60,000 you\u2019d need to save up for a 20% down payment! Is 20% really the average down payment on a house \u2014 and if not, what is it? Let\u2019s break down all of the evidence.<\/p>\n

\"Numbers<\/a>
<\/a> Source: (Drew Beamer \/ Unsplash)<\/figcaption><\/figure>\n

What\u2019s the difference between average and median?\u00a0<\/b><\/h2>\n

Before we explain how to think about your down payment, it\u2019s important that you understand the difference between an average and a median. Here\u2019s a refresher for those of you who haven\u2019t taken a math class in a few years.<\/p>\n

An average is a number that\u2019s representative of a set of numbers. You get the average by adding up a set of numbers, and then dividing that by how many numbers are in the set. Here\u2019s an example:<\/p>\n