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Along with your credit score, the amount you put down is one of the bigger factors in determining your mortgage rate. In general, the more you put down, the lower your rate. You can also avoid mortgage insurance altogether by putting down 20% or more on a conventional loan.
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A zero-down-payment mortgage is a loan for a home purchase that requires no money down from the buyer. The borrower obtains a mortgage for 100 percent of the purchase price.
100% financing home loans are essentially no money down home loans – they’re mortgages that finance the entire purchase price and eliminate the need for a down payment. Large down payments can be tough to save for with current housing prices, especially for first-time homebuyers, which has made 100% financing home loans increasingly popular.