For anyone who has ever bought a home or is considering purchasing a home for the first time, just hearing the words “down payment” is enough to send chills up their spine.

As you have started conducting research about what you can expect as you begin the process of saving and preparing for a home, you have probably stumbled upon information that has filled you with unease as you plan for your future. You’ve most likely read that the down payment you can expect to pay on a home would be around 20 percent of what the sellers are asking for it. That means that if you found your dream home with a price tag of $300,000 on it, you will somehow have to front $60,000 for the down payment alone.

There is some truth to that statistic, but it isn’t your only option. The thought of having to come up with such a significant amount of money at the onset makes continuing to pay rent on your smaller apartment a dream. 20 percent is just the standard, but you can do lower or even higher than that depending on your financial situation. Here is a breakdown for each option:

A Down Payment Of 20 Percent

This initial cost may send you opting for the cheapest option possible, but there are benefits to paying a 20 percent down payment. Not only will you be paying less down the road since you already fronted this bigger expense, but you will not be responsible for paying for mortgage insurance, which can up your total monthly costs. In addition to these perks, you could secure a better interest rate if you can prove you have the money to cover a 20 percent down payment.

A Down Payment Less Than 20 Percent

If there is just no feasible way that you can cover a 20 percent down payment, there are options available to you that will allow you to pay less than that. If you qualify, there is even a possibility you could put 0 percent down, but there are strict requirements you have to meet in order to pursue this option. When you do pay less than 20 percent, you should be aware that your monthly payments will be much higher and you will be paying more on interest – so, after everything is all said and done, you will actually be paying more for your home.

A Down Payment More Than 20 Percent

For some, paying more than 20 percent on a down payment is a choice because they have more flexibility within their budget. This would be the ideal option. For some, however, a bad credit score could mean they have to put more money down before they can purchase a home.

The thought of owning your own home is frightening because it is financially strapping and comes with a lot of changes. But don’t let these numbers deter you from your pursuits. There are options out there that can help to accommodate this process based on your financial situation.