Down Payment Calculator
Calculate how much you need for a down payment on a house. See closing costs, PMI requirements, and total cash needed to close.
Down Payment Summary
Down Payment
$80,000
20% of $400,000
Cash Needed
$88,000
Down payment + closing
Home Details
Down Payment
Loan Terms
Cash Needed at Closing
$88,000
Total cash needed to close
Down Payment Scenarios
| Down % | Down Payment | Loan Amount | Monthly | PMI |
|---|---|---|---|---|
| 5% | $20,000 | $380,000 | $2,750 | $222 |
| 10% | $40,000 | $360,000 | $2,605 | $210 |
| 15% | $60,000 | $340,000 | $2,460 | $198 |
| 20% | $80,000 | $320,000 | $2,129 | None |
| 25% | $100,000 | $300,000 | $1,996 | None |
Down Payment Summary
Down Payment
$80,000
20% of $400,000
Cash Needed
$88,000
Down payment + closing
Quick Answer
Standard down payment is 20% of home price ($60,000 on a $300,000 home) to avoid PMI. Lower down payments (3-5%) are available but require PMI. Our calculator shows savings timeline and payment impact.
Key Facts
- 20% down eliminates PMI requirement
- Minimum 3% down for conventional, 3.5% for FHA
- VA and USDA loans offer 0% down options
- PMI typically costs 0.5-1% of loan annually
- Higher down payment means lower monthly payment
- Consider closing costs (2-5%) in addition to down payment
Frequently Asked Questions
20% is ideal (avoids PMI), but 10-15% is common. FHA allows 3.5%, VA/USDA can be 0%. Consider: lower down payment = higher monthly payment and PMI. Higher down payment = less cash reserves. Balance depends on your emergency fund and other goals.
Private Mortgage Insurance protects the lender if you default. Required when down payment <20%. Costs 0.5-1.5% of loan annually ($100-300/month on $300k loan). Can be removed once you reach 20% equity. FHA MIP is similar but harder to remove.
Closing costs typically run 2-5% of the loan amount. Includes: origination fees (0.5-1%), appraisal ($300-500), title insurance (0.5-1%), attorney fees, recording fees, prepaid taxes/insurance. Some are negotiable or can be seller-paid.
Math depends on mortgage rate vs. investment returns. At 7% mortgage, 20% down saves ~$150/month in PMI plus interest. Market average is ~10%, but with risk. Guaranteed savings (mortgage) vs. potential gains (investing). Most prioritize 20% down first.
Yes, but rules vary by loan type. Conventional: typically need 5% from own funds if putting <20% down. FHA: 100% can be gifted. VA/USDA: gifts allowed. Gift letter required stating no repayment expected. Lender will verify source of funds.
Down Payment Summary
Down Payment
$80,000
20% of $400,000
Cash Needed
$88,000
Down payment + closing