Down Payment Calculator - How Much Do I Need for a House?
Calculate your home down payment and see how it affects monthly payments, PMI, and total costs. Find the right down payment for your budget.
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Down Payment vs Loan Amount
Why 20% Down is the Goal
20% down payment avoids PMI (Private Mortgage Insurance), gets you better interest rates, lowers monthly payments, and builds instant equity. On a $350,000 home, that's $70,000 down. Result: No PMI ($200-300/month savings), lower monthly payment, and you start with $70,000 equity instead of almost nothing.
Down Payment Minimums by Loan Type
Conventional: 3-5% minimum (PMI required under 20%) • FHA: 3.5% minimum (580+ credit) or 10% (500-579 credit) • VA: 0% minimum (eligible veterans, no PMI ever) • USDA: 0% minimum (eligible rural properties) • Jumbo: Often 10-20% minimum. Choose loan type based on your down payment amount and situation.
What is PMI?
PMI (Private Mortgage Insurance) protects the lender if you default. Required for conventional loans with less than 20% down. Cost: 0.5-1.5% of loan amount annually ($50-350/month typical). Automatically removed at 78% LTV or when you request it at 80% LTV. Not tax deductible (in most cases). Adds thousands to your total cost.
How Down Payment Affects Monthly Payment
Every $10,000 in down payment saves you roughly $60-75/month in principal and interest (at 7% rate, 30-year term). On a $350,000 home: 3% down ($10,500) = $2,260/month. 10% down ($35,000) = $2,100/month. 20% down ($70,000) = $1,863/month. Plus PMI savings of $200-300/month. Total difference: $400-700/month!
Don't Forget Closing Costs
⚠️ Budget an additional 3-5% of purchase price for closing costs (separate from down payment). On a $350,000 home: $10,500-17,500 in closing costs. These include: appraisal, inspection, title insurance, lender fees, prepaid property taxes, escrow setup. You need down payment PLUS closing costs in cash.
First-Time Homebuyer Programs
Many programs help with down payments: FHA loans (3.5% down), state/local down payment assistance grants (up to $15,000), IRA withdrawal ($10,000 penalty-free for first home), gift from family (must be documented). Explore all options before assuming you need 20% down. Many buyers start with 3-10% down.
Larger Down Payment vs Investment
Tradeoff: Put 20% down to avoid PMI vs put 10% down and invest the difference. Example: $350K home. Option A: $70K down (20%), no PMI, lower payment. Option B: $35K down (10%), pay PMI, invest the other $35K. If investments earn 8-10% annually, Option B might win long-term despite PMI cost. Run the numbers for your situation.
How Much Should You Actually Put Down?
Minimum for most: 20% to avoid PMI if possible. Exception: Put less down if (1) You can earn more investing the difference, (2) You need cash reserves for emergencies, (3) Home prices are rising fast (better to buy now with less down than wait), (4) Interest rates are rising (lock in rate now). Balance PMI cost against opportunity cost of cash.
Sources & References
Key Financial Terms
Understand the essential concepts behind this calculator
Down Payment
The initial cash payment made when purchasing a vehicle, reducing the amount you need to finance.
PMI (Private Mortgage Insurance)
Extra monthly cost added to mortgage if down payment is less than 20% of home value.
LTV (Loan-to-Value Ratio)
The percentage of the loan amount compared to the appraised value of the asset being purchased.
FHA Loan
A government-backed mortgage insured by the Federal Housing Administration, allowing low down payments (as low as 3.5%) and lower credit scores.
Frequently Asked Questions
Common questions about the Down Payment Calculator - How Much Do I Need for a House?
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⚠️ Important Disclaimer
This Down Payment Calculator - How Much Do I Need for a House? provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.