According to CoinMeta, the down payment is a portion of the home purchase price that buyers pay upon completion of the transaction. According to data from the National Real Estate Association, in 2025, the median down payment for all homebuyers was 19%, and for first-time homebuyers, it was 10%. Although it is not mandatory to pay a 20% down payment, a larger down payment means more equity in the property and usually results in lower mortgage loan interest rates. If a 20% or higher down payment is made, homebuyers will not be required to pay for mortgage insurance ( PMI ). The amount of the down payment affects the buyer's monthly repayment amount and the likelihood of loan approval.