Mortgage Down Payment Calculator

Calculate your ideal down payment, see how it affects your monthly payments, and understand PMI requirements.

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Quick Facts

20% Down Payment
Avoids PMI
Saves $100-300/mo typically
Minimum Down Payment
3-5%
Conventional loans require 3%+
PMI Cost
0.5-1% of loan/year
Required if under 20% down
Average Down Payment
13% nationally
First-time buyers: ~7%

Your Results

Calculated
Down Payment
$0
0% of home price
Loan Amount
$0
Amount to finance
Monthly Payment
$0
Includes PMI

Monthly Payment Breakdown

Principal & Interest $0
Property Tax $0
Home Insurance $0
PMI (Private Mortgage Insurance) $0
Total Monthly Payment $0

Compare Down Payment Options

Key Takeaways

  • A 20% down payment eliminates PMI, saving $100-300+ monthly
  • First-time buyers can put as little as 3% down with conventional loans
  • FHA loans require only 3.5% down with a 580+ credit score
  • VA and USDA loans offer 0% down payment options for eligible buyers
  • A larger down payment means lower monthly payments and less interest over time

What Is a Mortgage Down Payment?

A mortgage down payment is the upfront cash you pay toward the purchase of a home. It's expressed as a percentage of the total purchase price. For example, a 20% down payment on a $400,000 home would be $80,000.

The down payment reduces the amount you need to borrow from a lender. A larger down payment typically means:

  • Lower monthly mortgage payments
  • Better interest rates (lenders view you as less risky)
  • No PMI requirement (if 20% or more)
  • More equity in your home from day one

How Much Should You Put Down?

The "right" down payment depends on your financial situation, loan type, and goals:

Pro Tip: The 20% Sweet Spot

While 20% down isn't required, it's often the optimal target. You avoid PMI ($100-300/month savings), get better rates, and start with meaningful equity. But don't deplete your emergency fund to reach 20% - having 3-6 months of expenses saved is more important.

Understanding PMI (Private Mortgage Insurance)

PMI is insurance that protects the lender if you default on your mortgage. It's required when you put less than 20% down on a conventional loan.

Typical PMI costs: 0.5% to 1% of the loan amount per year, or about $50-100 per month for every $100,000 borrowed.

Good news: PMI isn't forever. Once you reach 20% equity (through payments or appreciation), you can request PMI removal. Lenders must automatically cancel it at 22% equity.

Down Payment Requirements by Loan Type

  • Conventional loans: 3-5% minimum (3% for first-time buyers)
  • FHA loans: 3.5% with 580+ credit score, 10% with 500-579 score
  • VA loans: 0% for eligible veterans and active military
  • USDA loans: 0% for rural property purchases
  • Jumbo loans: 10-20% typically required

How to Calculate Your Down Payment

Use this simple formula:

Down Payment = Home Price x Down Payment Percentage

Example: $350,000 home x 10% = $35,000 down payment

Don't forget to budget for closing costs (2-5% of the loan amount) in addition to your down payment!