Down Payment Average Drops

Figures show that the average down payment on a mortgage has decreased slightly

Down Payment Average Drops
April 29, 2016

The first quarter of 2016 has shown a slight decrease in the average down payment made for homebuyers with a conventional 30-year fixed rate mortgage. While most estimate a 20 percent down payment, the first quarter showed buyers making a down payment of 16.64 percent of the total property cost, down from 17.46 percent from the final quarter of 2015. This is also down from the first quarter of 2015, where the average down payment was 16.98 percent. In terms of dollars, quarter four of 2015 showed buyers paying an average of $51,721 in down payment funds, while first quarter 2016 averaged $49,839.

In addition to the down payments made on conventional mortgages, the overall down payments on purchase mortgages also dropped. These mortgages, which include jumbo and non-prime mortgages plus those made through the VA and FHA, had an average down payment of $44,058 or 12.18 percent of the purchase price during the second quarter of 2016. FHA mortgages saw a slight increase in the average down payment amount, moving up to $16,998 or 8.74 percent. Jumbo mortgages, on the other hand, stood at $194,950 or 23.89 percent during the first quarter of 2016.

Statistics show that the average down payment amount greatly varies by location. Those who buy in Shreveport, Louisiana, pay an average of 11.93 percent of the purchase price as a down payment, while those buying in New York pay an average of almost 20 percent (19.74), which equates to $78,979.51.

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