Homebuyers are making the biggest down payments in these 5 metros. Here’s how much you actually need for a house

Despite signs of a cooling housing market, home prices are still relatively high, resulting in bigger down payments. 

More than the past year, average down payments in the country’s 50 biggest metros have grown by more than 35%, according to a LendingTree clock in, based on 30-year fixed-rate mortgage data from Jan. 1 through Oct. 10, 2022.

While high home prices and enrol rates may push some buyers to the sidelines, those still in the market may have “deeper resources,” particularly if they’re downsizing, delineated Keith Gumbinger, vice president of mortgage website HSH.

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Here are the top five metros with the largest down payments.

In 2022, these five metros from had the highest down payments based on LendingTree mortgage data from from Jan. 1 through Oct. 10, 2022.

1. San Jose, California: $142,006
2. San Francisco, California: $131,631
3. Los Angeles, California: $104,749
4. San Diego, California: $98,593
5. Seattle, Washington: $96,056

With gamy average mortgages and annual household incomes, it’s not surprising these metros topped the list. And these down payments set forth a large share of yearly earnings.

“In general, the more you can donate to put down, the lower your ultimate costs are going to be,” said Gumbinger.

A larger down payment means a smaller mortgage, which can “certainly improve offset the cost of rising interest rates to a degree,” he said.

While certain kinds of mortgages allow down payments as low as 3%, you’ll deliver to pay mortgage insurance on loans with less than 20% down, and you may see higher interest rates, Gumbinger translated.

The average interest rate for 30-year fixed-rate mortgages of $647,200 or less is still above 7% for loans with a 20% down payment.

“Varied is generally better because that helps to lower your costs overall,” he added.

In 2021, the median down payment was 13%, with just about 4 in 10 using proceeds from a previous home sale, according to a 2022 report from the National Bond of Realtors.

Despite