Home Down Payment Calculator
Calculate down payment requirements, loan amounts, closing costs, and monthly savings needed to purchase a home.
Property & Down Payment
| Tier | Down Payment | Loan Amount | PMI Status |
|---|---|---|---|
| 3.5% (FHA Min) | $14,000 | $386,000 | PMI Added |
| 5% | $20,000 | $380,000 | PMI Added |
| 10% | $40,000 | $360,000 | PMI Added |
| 20% (Conventional) | $80,000 | $320,000 | No PMI |
How Down Payments Affect Your Mortgage
Your down payment is the initial upfront cash portion of the property purchase price that you pay at closing. A larger down payment reduces your overall loan principal, lowers your monthly mortgage payment, secures better interest rates from lenders, and avoids costly monthly PMI premiums.
Down Payment Options Overview
- 20% Down: Zero PMI required, lowest monthly payment, strongest seller offer appeal.
- 10% Down: Lower cash barrier, moderate PMI that can be cancelled once you reach 20% home equity.
- 3.5% - 5% Down: Fastest path to homeownership, allows buyers to purchase years earlier while building equity.
Home Buying Scenarios
- ✓First-Time Homebuyer Down Payment Planning
Determine whether you qualify for low-down-payment loan programs like 3.5% FHA or 3% conventional loans.
- ✓PMI Elimination (20% Down Payment Target)
Calculate the exact cash needed to reach the 20% equity threshold and eliminate monthly Private Mortgage Insurance (PMI) fees.
- ✓Comprehensive Closing Cost Cash Planning
Ensure you do not get blindsided by title fees, lender escrow prepayments, and underwriting costs on closing day.
- ✓Target Date Monthly Savings Roadmap
Reverse-engineer your house hunting deadline into a clear, non-negotiable monthly savings target.
Why Use This Down Payment Calculator
Tiered Down Payment Comparison
Side-by-side audit of 3.5% (FHA minimum), 5%, 10%, and 20% down payment structures for your target home price.
Closing Costs Integration
Calculates the full out-of-pocket cash to close, combining the down payment with estimated 2% to 5% closing costs.
PMI Status Indicator
Flags whether Private Mortgage Insurance will be added to your monthly mortgage payment based on your down payment percentage.
One-Click Plan Copy
Export a clean summary of home purchase price, cash needed, and monthly savings to review with your mortgage loan officer.
Frequently Asked Questions
Do you really need 20% down to buy a house?
No. While putting 20% down eliminates Private Mortgage Insurance (PMI) and lowers your monthly payment, many loan programs permit much lower down payments: conventional loans often require as little as 3% to 5%, FHA loans require 3.5%, and VA and USDA loans offer 0% down for eligible borrowers.
What is Private Mortgage Insurance (PMI)?
PMI is an insurance policy that protects the mortgage lender if you default on your loan. Lenders typically require PMI if your down payment is less than 20% of the purchase price. PMI typically costs between 0.3% and 1.5% of the original loan balance annually.
How much are typical buyer closing costs?
Buyer closing costs generally range from 2% to 5% of the total purchase price. This covers appraisal fees, home inspection, loan origination, title search, escrow deposits, and property transfer taxes.
Can gift funds be used for a down payment?
Yes, most mortgage programs permit gift funds from immediate family members, provided you supply a signed gift letter and documentation proving the donor's transfer of funds.
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