Down Payment Calculator

Every dollar you put down reduces your loan amount by a dollar — but the downstream effects go beyond just borrowing less. A larger down payment lowers your monthly payment, reduces the total interest you pay over the life of the loan, and can eliminate private mortgage insurance entirely. It also reduces the lender's risk, which sometimes results in a slightly better interest rate.

PMI is the key threshold. On a conventional loan, putting down less than 20% means the lender requires you to carry PMI until your equity reaches that level. PMI is not permanent: by law, lenders must cancel it automatically when your loan balance reaches 78% of the original home value (based on your scheduled amortization), and you can request cancellation at 80%. On an FHA loan, the rules are stricter — mortgage insurance usually stays for the life of the loan unless you refinance into a conventional mortgage once you have enough equity.

Common minimums by loan type: conventional loans require as little as 3% for first-time buyers (5% otherwise), FHA requires 3.5%, and VA and USDA loans have no down payment requirement for eligible borrowers. Jumbo loans, which exceed the conforming loan limit, generally require 10-20% or more depending on the lender.

One thing to avoid: draining your entire savings into the down payment. Most lenders want to see cash reserves after closing, typically 2-3 months of mortgage payments. Putting down 18% instead of 20% to keep a cash buffer is often smarter than going to 20% and having nothing left for emergencies.