A larger down payment is needed for a 18-year fixed rate mortgage than for a 30-year fixed rate mortgage.

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Lenders typically require a larger down payment for shorter-term mortgages, such as an 18-year fixed rate mortgage, as there is less time for the borrower to build equity and pay off the loan. Longer-term mortgages, such as a 30-year fixed rate mortgage, may require a smaller down payment as there is more time for the borrower to make payments and build equity.

A Larger Down Payment Is Needed for a 18-Year Fixed