Down Payment Calculator
Calculate your down payment, upfront costs, and determine the optimal amount to put down on your home purchase.
Home Purchase Details
$60,000
Affects PMI rate for conventional loans
Minimum Required
3% ($9,000)
Financial Information
Credit cards, auto, student loans
Affordability Status
✓ Can Afford
Down Payment Summary
Down Payment
$60,000
20% of price
Loan Amount
$240,000
Total Upfront Costs
$69,000
Down payment + closing costs
Cost Breakdown
Qualification Analysis
Target: ≤28%
Target: ≤36% (Conventional), ≤43% (FHA)
Recommended
20% ($60,000)
Savings Breakdown
Down Payment Scenarios
| Scenario | Down | Loan | PMI/mo | Total Upfront |
|---|---|---|---|---|
| Minimum | $9,000 | $291,000 | $0 | $18,000 |
| 10% | $30,000 | $270,000 | $0 | $39,000 |
| 15% | $45,000 | $255,000 | $0 | $54,000 |
| 20% (No PMI) | $60,000 | $240,000 | $0 | $69,000 |
| Your Choice | $60,000 | $240,000 | $0 | $69,000 |
What is Down Payment Calculator?
Understanding Down Payments
A down payment is the upfront cash you pay when purchasing a home. It reduces your loan amount and demonstrates financial commitment to lenders. The down payment amount affects your monthly payment, interest rate, and whether you'll need private mortgage insurance (PMI).
Down Payment Requirements by Loan Type
| Loan Type | Minimum Down | PMI Required | Best For |
|---|---|---|---|
| Conventional | 3% | If < 20% down | Good credit, standard purchase |
| FHA | 3.5% | Always (MIP) | First-time buyers, lower credit |
| VA | 0% | No | Veterans, active military |
| USDA | 0% | Yes (upfront + annual) | Rural properties, low-income |
The 20% Down Payment Myth
Benefits of 20% Down
- Avoid PMI (saves $100-300/month typically)
- Lower interest rates
- Lower monthly payments
- More equity from day one
- Stronger negotiating position
When Less Than 20% Makes Sense
- Home prices rising faster than you can save
- Strong rental market (opportunity cost)
- Low interest rate environment
- Good investment opportunities for cash
- Need to buy now (job relocation, growing family)
Additional Upfront Costs
Closing Costs (2-5%)
- Loan origination fees
- Appraisal ($300-500)
- Title insurance
- Attorney fees
- Inspection ($300-500)
Other Costs
- Earnest money deposit
- Property taxes (prepaid)
- Homeowners insurance (prepaid)
- Moving expenses
- Immediate repairs/updates
PMI Explained
Private Mortgage Insurance (PMI) protects the lender if you default. It's required for conventional loans with less than 20% down payment.
PMI Costs: Typically 0.3% to 1.5% of loan amount annually
Removal: Can request removal once you reach 20% equity (80% LTV)
Automatic: Lender must cancel at 22% equity (78% LTV)