Most home mortgages require a down payment on new home purchases. The amount needed varies according to the type of loan you select. Some of the best first time home buying tips suggest always factoring in this expense when calculating your total budget.

On a $300,000 home, a down payment of 5% would be $15,000. If you can negotiate 3% — only a few percentage points difference — you would be able to save $6,000 on your down payment. Government-sponsored mortgages, FHA loans and VA loans may have lower amounts or lend you money with 0% down.

The Balance Between Money Down and Interest Rates

The ideal loan for you isn’t always the one with the lowest down payment. If you can afford to make a larger initial payment, you may be able to qualify for a better interest rate. In other words, there’s often a trade-off between long-term savings and short-term convenience. Go with the option that fits your budget and bank account the best.