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.
