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11 homebuying myths that people actually believe

Bob Vila Logo By Debra Immergut of Bob Vila | Slide 1 of 11: <p>As home prices climb, home buyers have a tougher time accumulating a cash down payment that amounts to 20 percent of the typical purchase price. The good news: You can usually get your dream house with a smaller up-front payment. On the downside, however, you’ll have to buy either private mortgage insurance or government insurance for at least a few years. Be forewarned: This <a href="http://www.bobvila.com/slideshow/9-things-you-didn-t-know-about-flood-insurance-48735?#.WM_oCBIrJE4">insurance</a> can add hundreds of dollars to your mortgage payment each month. </p><br><p><strong>Related: <a href="http://www.bobvila.com/slideshow/12-surprising-truths-about-millennial-homebuyers-50838?bv=embed">12 Surprising Truths About Millennial Home Buyers</a></strong></p>

Always Make a 20 Percent Down Payment

As home prices climb, home buyers have a tougher time accumulating a cash down payment that amounts to 20 percent of the typical purchase price. The good news: You can usually get your dream house with a smaller up-front payment. On the downside, however, you’ll have to buy either private mortgage insurance or government insurance for at least a few years. Be forewarned: This insurance can add hundreds of dollars to your mortgage payment each month.


Related: 12 Surprising Truths About Millennial Home Buyers

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