Down Payment Calculator
Your down payment and loan amount from price and percent down.
Input sheet
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Your down payment sets your loan size, your monthly payment, and whether you'll owe mortgage insurance. This breaks a percentage down into the dollars you need and the loan that's left.
How it works
Price times the percent down is your down payment; the rest is the loan. Under 20% down typically triggers PMI.
The math is simple — the home price times your percent down is the cash required, and the remainder is the loan. The consequential line is the 20% threshold: putting down less than 20% typically triggers private mortgage insurance (PMI), a monthly add-on that protects the lender, not you.
A larger down payment lowers both the loan amount and the monthly payment, and crossing 20% removes PMI entirely. But draining every dollar into a down payment can leave you without an emergency cushion — balance the two.
Down payment = home price × percent down; Loan amount = home price − down payment
Worked examples
$400,000 home at 20% down → $80,000 down, $320,000 loan, no PMI
$400,000 × 20% = $80,000 down, leaving a $320,000 loan — and 20% down means no private mortgage insurance.
$400,000 home at 10% down → $40,000 down, $360,000 loan, PMI likely
Half the down payment means a larger loan and, because it's under 20%, monthly PMI added until you build enough equity.
Tips & gotchas
- Hitting 20% down removes PMI, which can save $100–$300/month for nothing you keep — a strong reason to reach that threshold if you can.
- Don't empty your savings for a bigger down payment; keep an emergency fund of several months' expenses intact.
- Many first-time-buyer and government-backed programs allow far less than 20% down — useful for getting in sooner, with PMI as the trade-off.
- Once you reach ~20% equity through payments or appreciation, you can usually request PMI removal — don't let it run longer than required.
FAQ
What is PMI and why does 20% matter?
Private mortgage insurance protects the lender if you default. It's typically required when you put down less than 20%, and it can usually be cancelled once you reach about 20% equity.
Is a 20% down payment required to buy?
No. Conventional loans can go as low as 3% down, and some government-backed programs lower or eliminate the requirement. Less down means PMI and a larger loan, but it gets you in sooner.
Does a bigger down payment get me a better rate?
Often slightly, because a lower loan-to-value ratio is less risky to the lender. The larger effect is removing PMI and shrinking the loan itself.
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