Down Payment Calculator

See how different down payment amounts affect your mortgage and monthly payments.

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PMI is typically required when down payment is less than 20%

Down Payment Required
$80,000
20% of home price
Loan Amount
$320,000

Monthly Payment Breakdown

Principal & Interest $2,076
PMI (Private Mortgage Insurance) $0
Total Monthly (P&I + PMI) $2,076

Down Payment Comparison

See how different down payment amounts affect your loan:

Down Payment % Down Payment $ Loan Amount Monthly P&I Monthly PMI Total Monthly

Understanding Down Payments

Your down payment is the cash you pay upfront when buying a home. Here's what you need to know:

Minimum Down Payment Requirements

  • Conventional Loans: 3-5% minimum (20% to avoid PMI)
  • FHA Loans: 3.5% with 580+ credit score
  • VA Loans: 0% for eligible veterans
  • USDA Loans: 0% for rural areas
  • Jumbo Loans: 10-20% typically required

Benefits of a Larger Down Payment

  • Lower monthly mortgage payments
  • Less interest paid over the life of the loan
  • No PMI with 20% or more down
  • Better interest rates from lenders
  • More equity from day one
  • Stronger offer in competitive markets

What is PMI?

Private Mortgage Insurance (PMI) protects the lender if you default on your loan. It's required when your down payment is less than 20%.

PMI Costs

PMI typically costs 0.3% to 1.5% of your loan amount per year, depending on your credit score and down payment percentage.

How to Remove PMI

  • Automatic removal at 78% LTV (based on original value)
  • Request removal at 80% LTV
  • Refinance once you have 20%+ equity
  • Get a new appraisal if home value increased

Don't Forget Closing Costs

In addition to your down payment, budget 2-5% of the home price for closing costs (appraisal, title insurance, attorney fees, etc.).