Down Payment Calculator
Calculate how much down payment you need, your resulting monthly payment, and how long it will take to save — with side-by-side comparisons at 3%, 5%, 10%, and 20% down.
Down Payment Comparison
| Down % | Down $ | Monthly P&I | PMI/mo | LTV | Total Interest |
|---|
How Much Down Payment Do You Need?
The minimum down payment depends on the type of loan:
| Loan Type | Minimum Down | PMI Required? |
|---|---|---|
| Conventional | 3–5% | Yes, if under 20% |
| FHA | 3.5% (credit 580+) | Yes (MIP entire loan) |
| VA (veterans) | 0% | No |
| USDA (rural) | 0% | No |
| Jumbo | 10–20% | Varies |
The Case for 20% Down
A 20% down payment eliminates PMI, giving you a lower monthly payment and immediate full equity protection. You also get better interest rate options and avoid being underwater if values dip.
Downside: Saving 20% takes time — often 5–10 years in high-cost markets. In appreciating markets, waiting to save 20% sometimes costs more than paying PMI.
PMI: What It Costs and When It Goes Away
Private mortgage insurance (PMI) is required on conventional loans when your down payment is less than 20%. It protects the lender, not you.
- Cost: Typically 0.5–1.5% of the loan per year (about $50–$150/month per $100k borrowed)
- Cancellation: You can request PMI removal when your loan balance reaches 80% of the original home value. It automatically cancels at 78% under the Homeowners Protection Act.
Frequently Asked Questions
Can I avoid PMI with less than 20% down? Some lenders offer "piggyback loans" (80/10/10) where a second mortgage covers 10%, and you put 10% down — eliminating PMI. Lender-paid PMI rolls the cost into a slightly higher rate.
Is a bigger down payment always better? Not always. If your mortgage rate is low, you may earn a better return investing the extra cash rather than putting it into home equity. Run the numbers for your situation.
Don't forget closing costs on top of your down payment. Buyers often budget carefully for the down payment and then get surprised by closing costs at the table. The Closing Costs Calculator gives you an itemized estimate of lender fees, title charges, and prepaid items so you know your full cash-to-close number before you make an offer.
