Housing Planning
Should You Put 20% Down in 2026?
A 20% down payment can reduce monthly costs and often avoid PMI. But it is not automatically the best option for every household.
When 20% is attractive
- You keep healthy reserves even after closing.
- Lower payment materially improves monthly flexibility.
- You prefer conservative debt positioning.
When less than 20% can be smarter
- You need cash buffer for uncertainty.
- You have higher-priority debt or obligations.
- You can remove PMI later through amortization/appreciation.
Decision lens: avoid being "house rich, cash poor." Liquidity still matters after closing.
How to choose confidently
- Model 10%, 15%, and 20% down scenarios.
- Compare all-in payment and reserve levels.
- Select the option that balances affordability and resilience.