Aside from increased equity, what is another benefit of having a down payment of at least 20%?

Having a down payment of at least 20% is advantageous primarily because it allows homebuyers to avoid private mortgage insurance (PMI). PMI is typically required when a buyer makes a down payment of less than 20% of the home's purchase price. This insurance protects lenders in case the borrower defaults on the loan. By making a larger down payment, homeowners can eliminate this extra cost, which can substantially reduce their monthly payment and generally make homeownership more financially feasible.

Furthermore, while a larger down payment can indeed lead to better mortgage rates and lower monthly payments, the key aspect of avoiding PMI is a direct financial benefit that many buyers appreciate. This not only lowers overall housing costs but also makes buying a home more affordable in the long term.