How to use the down payment calculator
- 1 Enter the home price and your down payment percentage.
- 2 Choose the loan type: conventional, FHA, VA or USDA.
- 3 Enter the mortgage rate and, for conventional loans, the PMI rate.
- 4 Enter what you have saved and can save each month, then read your payment and savings plan.
Worked example
A $400,000 home with 10% down on a conventional loan at 6.5%, PMI at 0.6%, $20,000 saved and $1,000 saved each month. The down payment is $40,000 and the loan $360,000. Principal and interest are $2,275.44 and PMI $180, a total of $2,455.44 a month before taxes and insurance. PMI comes off after about 10 years. With 3% closing costs the cash needed is $52,000, so $32,000 more is needed: 32 months of saving.
Saving for your down payment
- Look for down payment assistance from your state or city.
- Compare 10% and 20% down: PMI often costs less than waiting.
- Add closing costs of 2% to 5% to your target.
- Keep an emergency fund after closing.
See the price you can afford with the Home Affordability Calculator, FHA costs with the FHA Loan Calculator, and your plan with the Savings Goal Calculator.
Features
Four loan types
Minimum down payments: 3% conventional, 3.5% FHA, 0% VA and USDA.
Mortgage insurance
PMI, FHA MIP, the VA funding fee and USDA fees worked out for you.
Savings plan
Cash needed with 3% closing costs and the months left to save.
When to use it
First-time buyers
See what 3%, 10% or 20% down means for your payment. Check what you can afford with the Home Affordability Calculator.
FHA borrowers
See the full FHA payment with the FHA Loan Calculator.
Veterans
Compare funding fees in the VA Loan Calculator.
Saving for a home
Set a monthly target with the Savings Goal Calculator.
Related Home and Auto tasks
Frequently asked questions
How much is a down payment on a house?
As little as 3% on some conventional loans, 3.5% on FHA loans and 0% on VA and USDA loans. 20% avoids PMI on a conventional loan. On a $400,000 home, 10% is $40,000.
Do I need 20% down?
No. 20% avoids private mortgage insurance on a conventional loan, but many buyers put down less. PMI typically costs 0.3% to 1.5% of the loan a year.
When does PMI go away?
You can ask to cancel PMI when the loan reaches 80% of the original home value, and it ends automatically at 78%. With 10% down at 6.5%, that takes about 10 years of regular payments.
What does FHA mortgage insurance cost?
An upfront premium of 1.75% of the loan, usually added to the loan, plus an annual premium of 0.55% for most 30-year loans with under 5% down, paid monthly.
What is the VA funding fee?
A one-time fee on VA loans: 2.15% of the loan with under 5% down for first use, 1.5% with 5% to 10% down and 1.25% with 10% or more. Veterans with a service-connected disability are exempt.
What are USDA loan fees?
A 1% upfront guarantee fee and a 0.35% annual fee. USDA loans need no down payment but are only for eligible rural and suburban areas and moderate incomes.
How much cash do I need to buy a house?
The down payment plus closing costs, usually 2% to 5% of the price. The calculator adds 3%. Lenders may also want cash reserves.
Can I use gift money for a down payment?
Yes, on most loan types, with a gift letter saying the money does not have to be repaid. Some conventional loans require part of the down payment to be your own money.
Are there down payment assistance programs?
Yes. Many states, cities and housing agencies offer grants or second loans to first-time buyers, often with income limits.
Is a bigger down payment always better?
A bigger down payment lowers your payment, rate and insurance, but it also uses cash you may need for emergencies, moving and repairs. Keep an emergency fund too.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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