The minimum down payment is the lowest amount of money that a lender will allow an individual to pay on the purchase of a house. The minimum down payment will be different for every lender and for every lending program. The amount of the down payment that is made will have a significant impact on the mortgage payment.

In most cases, if the minimum down payment is less than 20 percent of the total value of the house, the buyer will have to pay private mortgage insurance. Private mortgage insurance is designed to limit the risk to the mortgage lender. If you go into default, the mortgage will be reimbursed by the insurance company. 

If you can make a substantial down payment, it will lower your total mortgage payment. Many times, lenders will give you a better interest rate if you make a larger down payment. Coming up with only the minimum down payment will get you the highest interest rate that the mortgage lender has to offer for people with your credit score and income. Therefore, is generally not in your best interest to make a minimum down payment when purchasing a home.

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