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Many first-time buyers put down 3 to 10 percent, not 20. A smaller down payment usually means mortgage insurance until you reach 20 percent equity.

What a starter home costs

Cost Amount Note
Down payment (10%) $32,000 On a $320,000 starter home
Closing costs $6,400–$9,600 2–3 percent of the price
Monthly mortgage (6.1%) $1,745 Principal and interest only
Taxes + insurance $420 a month Varies widely by county
Emergency repairs 1% a year Set it aside from day one
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