Down Payment Calculator

Minimum down payments by loan type: Conventional 3–5% (5% avoids some fees), FHA 3.5% (with 580+ FICO), VA 0% (veterans), USDA 0% (rural areas), Jumbo 10–20%. Putting less than 20% down typically requires private mortgage insurance (PMI).

PMI (Private Mortgage Insurance) protects the lender if you default. It costs 0.5–1.5% of the loan amount annually, added to your monthly payment. PMI is automatically cancelled once you reach 20% equity (78% LTV by law). On a $350,000 loan, PMI could cost $145–$440/month.

A larger down payment lowers your monthly payment, avoids PMI (if 20%+), and reduces total interest paid. However, tying up savings in home equity reduces liquidity. Many financial advisors suggest the 20% threshold primarily to avoid PMI, then investing remaining savings.