Before you commit to buying a home, it’s important to remember that this is one of the biggest financial decisions of your life. One of the smartest steps you can take to save thousands of dollars on your home, is to give a 20% down payment.

Although it isn’t required to have 20 percent down payment to get a mortgage loan, it’s  a good idea to do so if you want to avoid paying private mortgage insurance (PMI). The PMI protects the lender in the event that the buyer defaults on payments.