Down Payment Calculator for Home Loans
Down Payment Calculator
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Important Considerations
The down payment calculator shows how different down payment amounts affect your mortgage size, monthly payment, and whether you need to pay private mortgage insurance (PMI). It also calculates how long you need to save to reach your target down payment.
Down Payment Minimums by Loan Type
| Loan Type | Minimum Down Payment | Notes |
|---|---|---|
| Conventional loan | 3% | PMI required below 20% |
| FHA loan | 3.5% | Credit score 580+; MIP always required |
| VA loan | 0% | Veterans and active military only |
| USDA loan | 0% | Rural areas, income limits apply |
| Jumbo loan | 10-20% | Above conforming loan limits ($766,550 in most areas 2024) |
Impact of Down Payment on Monthly Cost ($400,000 Home, 7% Rate)
| Down Payment | Loan Amount | Monthly P&I | PMI/Month (est.) | Total Monthly |
|---|---|---|---|---|
| 3% ($12,000) | $388,000 | $2,582 | $194 | $2,776 |
| 5% ($20,000) | $380,000 | $2,528 | $190 | $2,718 |
| 10% ($40,000) | $360,000 | $2,395 | $144 | $2,539 |
| 20% ($80,000) | $320,000 | $2,129 | $0 | $2,129 |
| 25% ($100,000) | $300,000 | $1,996 | $0 | $1,996 |
Saving for a Down Payment
To save $60,000 for a 15% down payment on a $400,000 home: at $1,500/month it takes 40 months (about 3.3 years). At $2,000/month it takes 30 months. Using a high-yield savings account at 4.5% APY during this period earns several thousand dollars in interest, shortening the timeline slightly.
Months to Goal = (Target Amount - Current Savings) / Monthly Savings
Factor in interest earned on savings. $60,000 goal, $10,000 saved, $1,500/month: ($60,000-$10,000)/$1,500 = 33 months (plus interest earned shortens this further).
Frequently Asked Questions
How much down payment do I need to buy a house?⌄
The minimum depends on the loan type. Conventional loans allow as low as 3%. FHA loans require 3.5%. VA and USDA loans require 0% for eligible borrowers. However, putting at least 20% eliminates PMI and lowers your monthly payment significantly.
What is PMI and how much does it cost?⌄
PMI (private mortgage insurance) protects the lender when you put less than 20% down. It typically costs 0.5-1.5% of the loan amount per year, or about $100-$250/month on a $300,000 loan. It adds no direct benefit to the buyer. Once you reach 20% equity, you can request cancellation.
Is it better to put more or less down on a house?⌄
More down means lower monthly payments, no PMI, and less total interest. Less down means you keep more cash for emergencies, investments, or moving costs. A 20% down payment is the traditional benchmark because it eliminates PMI. Going below 10% means significantly higher long-term cost.
Can I use gift money for a down payment?⌄
Yes, for most loan types. Conventional, FHA, and VA loans all allow gift funds with a signed gift letter from the donor stating no repayment is expected. Some loan types require you to contribute a minimum amount from your own funds. Check specific requirements with your lender.