Down Payment Calculator
Plan your down payment and understand its impact on your mortgage.
What is a Down Payment?
A down payment is the upfront cash you pay when purchasing a home. It reduces the loan amount and can eliminate the need for private mortgage insurance (PMI) when it reaches 20% of the home price.
How to Use This Calculator
- Enter the home price and either a down payment percentage or dollar amount.
- Enter your expected mortgage interest rate and loan term.
- Click Calculate to see your loan amount, monthly payment, total interest, and PMI estimate.
Frequently Asked Questions
What is PMI?
Private Mortgage Insurance (PMI) protects the lender if you default. It is typically required when your down payment is less than 20% of the home price.
How much should I put down?
20% is the traditional target to avoid PMI, but many loans accept 3-10%. Consider your savings, emergency fund, and other financial goals.
Does a larger down payment always save money?
A larger down payment reduces interest and PMI, but it also ties up cash. Compare the interest savings against potential investment returns on that cash.
Can I remove PMI later?
Yes, once your loan balance drops to 80% of the home's original value, you can typically request PMI removal. At 78%, it is often removed automatically.