A good rule of thumb to go by is if you decided to put down say 10%, you should really have 15% to cover any additional costs. Taxes, settlement fees, state or local government charges, can add up quickly on top of that down payment.

If you are a first time buyer, your best option is to sit down with your mortgage broker and decide exactly how much you will need to close. Since you don't have a current mortgage with built up equity, the money will need to come from somewhere else. If you decide that you just don't have enough for a large down payment, you may have to settle for putting down what you do have. This could result in a larger monthly payment but at least you will be in your desired home.

If you are a current home owner, hopefully you have acquired a good amount of equity over the years and are ready to put it to good use. A larger down payment directly results in smaller monthly payments and can also lower your loan interest rate. Having some stress taken off of your budget every month can be a lifesaver. This also allows you to take that extra money and use it for various investments or put it in savings for an emergency later on.

The ideal amount to put down on a loan would be 20% or above. This will help secure those prime interest rates that are advertised these days. It will also help to avoid paying mortgage insurance you may otherwise be saddled with.