Down Payment Calculator

Conventional loans typically require 5-20%. FHA loans allow as low as 3.5% with a credit score of 580+. VA loans and some USDA loans require 0% down. However, putting less than 20% down usually requires Private Mortgage Insurance (PMI), adding $100-300/month to your costs. More down payment = lower monthly payments and total interest.

Private Mortgage Insurance protects the lender if you default with less than 20% equity. PMI typically costs 0.5-1.5% of the loan annually ($150-450/month on a $360,000 loan). You can avoid PMI by putting 20% down, using a piggyback loan (80-10-10), or choosing a lender-paid PMI option with a slightly higher rate.

It depends on your market and financial situation. Waiting to save 20% avoids PMI but means paying rent longer and potentially facing higher home prices. Buying sooner with 5-10% down gets you building equity sooner and locking in today's prices. The calculator compares both scenarios so you can see the total cost difference.

The calculator divides your remaining savings goal by the number of months until your target date. If you need $60,000 in 3 years: $60,000 / 36 = $1,667/month. If earning interest on savings (e.g., 4% in a high-yield savings account), you can save slightly less since interest contributes to the goal.

You can optionally add closing costs (typically 2-5% of the home price) to your savings target. Closing costs include origination fees, appraisal, title insurance, escrow, and prepaid items. A $400,000 home might have $12,000-20,000 in closing costs on top of the down payment.