Down Payment Calculator
Calculate your down payment requirements and see how different down payment amounts affect your monthly payment, PMI, and total costs.
Home & Loan Details
Your Down Payment
Down Payment Amount
$80,000
Loan Amount
$320,000
Loan-to-Value
0.80%
PMI Status
No PMI
Equity at Purchase
20.00%
Monthly Payment Breakdown
Down Payment Tips
- • Keep 3-6 months expenses in emergency fund before buying
- • Consider closing costs (2-5% of home price) in addition to down payment
- • 20% down eliminates PMI and gets best rates
- • Gift funds and assistance programs can help with down payment
Loan Type Benefits
Conventional
3-5% down, PMI removable at 20% equity
FHA
3.5% down, lower credit requirements
VA
0% down for eligible veterans
USDA
0% down for rural properties
Cost Comparison
Down Payment Impact on $400K Home (2026)
As of 2026, here's how different down payment amounts affect a $400,000 home at 7% interest:
| Down Payment | Loan Amount | Monthly P&I | PMI | Total Interest |
|---|---|---|---|---|
| 3.5% ($14,000) | $386,000 | $2,568 | $177.00 | $538,000 |
| 10% ($40,000) | $360,000 | $2,394 | $165.00 | $502,000 |
| 20% ($80,000) | $320,000 | $2,128 | $0.00 | $446,000 |
| 30% ($120,000) | $280,000 | $1,862 | $0.00 | $390,000 |
Key Insight: Putting 20% down saves you $165.00 per month in PMI and $56,000 in total interest compared to 10% down. However, you need $40,000 more upfront cash.
Frequently Asked Questions
What is the minimum down payment for a mortgage?
Minimum down payments vary by loan type: Conventional loans typically require 3-5%, FHA loans require 3.5%, VA loans require 0% for eligible veterans, and USDA loans require 0% for eligible rural properties. However, putting down 20% or more avoids PMI and can get you better interest rates.
How much should I put down?
The ideal down payment depends on your financial situation. 20% is ideal because it avoids PMI and gets you the best rates. However, don't deplete your savings - keep 3-6 months of expenses in an emergency fund. Consider putting down 10-15% if you want to reduce PMI while maintaining financial flexibility.
What is PMI and how does down payment affect it?
PMI (Private Mortgage Insurance) protects lenders if you default with less than 20% down. PMI typically costs 0.5-1% of the loan amount annually. The more you put down, the lower your PMI. At 20% down, PMI is eliminated. FHA loans have MIP (Mortgage Insurance Premium) instead of PMI.
Can I use gift funds for my down payment?
Yes, many loan programs allow gift funds for down payments. Conventional loans typically require at least 5% of your own money (gifts can cover the rest). FHA and VA loans allow 100% gift funds. The gift giver must provide a letter stating the money is a gift, not a loan, and show proof of funds.
What are the benefits of a larger down payment?
Larger down payments offer multiple benefits: lower monthly payments, no PMI (at 20%+), better interest rates, instant equity in your home, lower total interest paid over the loan term, and more competitive offers when buying. However, don't sacrifice your emergency fund.
Should I put 20% down to avoid PMI?
Putting 20% down to avoid PMI makes sense if you have the funds without depleting your emergency fund. Calculate the PMI cost vs. opportunity cost of that money. If PMI costs $200/month but you could earn $300/month investing that money, keeping the cash might be better. Consider your overall financial picture.
What is the difference between FHA and conventional down payments?
FHA loans require only 3.5% down with lower credit score requirements (580+), but have mandatory mortgage insurance for the life of the loan. Conventional loans require 3-5% down with higher credit score requirements (620+), but PMI can be removed once you reach 20% equity. FHA is better for first-time buyers with limited savings.
How does down payment affect my interest rate?
Larger down payments typically result in lower interest rates because they represent less risk to lenders. A 20% down payment might get you a rate 0.125-0.25% lower than a 5% down payment. Over 30 years, this can save thousands in interest. Lenders also offer better pricing for lower loan-to-value ratios.
Can I borrow money for my down payment?
Generally, no. Most mortgage programs require down payments to come from your own savings, gifts, or approved assistance programs. Borrowing money (personal loans, credit cards, 401k loans) for a down payment is typically not allowed and can lead to loan denial. Some exceptions exist for certain assistance programs.
What down payment assistance programs are available?
Many states and local governments offer down payment assistance programs, especially for first-time buyers. These can provide grants, forgivable loans, or low-interest loans to help with down payments and closing costs. Check with your state housing finance agency, local HUD-approved counselors, or ask your lender about available programs.