Did you know? Many Bemidji homeowners are finding themselves in a stronger position to put more money down when they purchase their next home. That’s because, once you sell, you can leverage the equity you’ve built up in your current house for a larger down payment. With home equity reaching new highs, the typical down payment is increasing as well.

 

According to the latest data from Redfin, the typical down payment for U.S. homebuyers is $67,500—nearly 15% higher than last year and the highest on record. Here’s why your equity in Bemidji can be a game-changer:

 

Why Equity Matters in the Bemidji Housing Market

 

Over the past five years, home prices in Bemidji and the surrounding areas have seen significant growth, boosting equity for homeowners like you. If you’re considering selling your Bemidji home, this increase in equity means you can apply a larger down payment on your next purchase. That’s a great opportunity, especially if affordability has been a concern.

 

It’s worth noting that you don’t have to make a large down payment—there are loan programs available that let you put as little as 3%, or even 0%, down. However, many Bemidji homeowners are choosing to put more down due to some significant advantages.

 

Why a Bigger Down Payment Is Worth Considering

 

1.You’ll Borrow Less and Save More in the Long Run

Using the equity from your Bemidji home to make a larger down payment on your next property means borrowing less. The less you borrow, the less you’ll pay in interest over the life of the loan, saving you money over time.

 

2.You Could Get a Lower Mortgage Rate

A larger down payment demonstrates financial stability, reducing the risk for lenders. That confidence can help secure a lower mortgage rate, which translates into more savings for Bemidji homeowners.

 

3.Your Monthly Payments Could Be Lower

A bigger down payment can also lower your monthly mortgage payment, making your new Bemidji home more affordable and leaving more room in your budget for other expenses.

 

4.You Can Skip Private Mortgage Insurance (PMI)

Putting down 20% or more can help you avoid Private Mortgage Insurance (PMI), an extra cost that many buyers have to pay if their down payment is less than 20%. As Freddie Mac explains:

 

For homeowners who put less than 20% down, Private Mortgage Insurance or PMI is an added insurance policy that protects the lender if you are unable to pay your mortgage.

 

Skipping PMI means one less expense to worry about each month.

 

Bottom Line for Bemidji Homeowners

 

With home equity in Bemidji continuing to rise, many local homeowners are finding themselves in a position to make larger down payments. If you’re thinking about selling your current Bemidji home and moving, reach out to our team at [Team Name]. We’ll help you determine how much equity you’ve gained and how it can strengthen your buying power in today’s Bemidji market.

 

Wondering how much equity you have in your Bemidji home? Contact us today for a personalized equity assessment and find out how we can help you maximize your buying power. Give us a call or fill out our quick seller questionnaire below to get started! (If you don't see the form, scroll down and click "Allow Cookies")

 

 

☎️ Steve: 218-766-9126

☎️ Tyler: 218-308-1230

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