Down Payment Calculator
Enter the home price and how much you plan to put down. You get the loan amount, monthly principal and interest, closing costs, total cash to close, and how long it takes to save it.
Monthly payment is principal and interest only — property tax, homeowners insurance and HOA dues are extra, and usually add 20–35% to the payment. Closing costs are estimated as a percentage of the price; your loan estimate is the authoritative figure. PMI is estimated at 0.5% of the loan per year.
Frequently asked questions
How much cash do I need to buy a house?
Down payment plus closing costs, and usually a few thousand more for moving, inspections and immediate repairs. Closing costs typically run 2–5% of the purchase price. On a $400,000 home with 20% down, that is $80,000 plus roughly $12,000 at 3% — about $92,000 before you own a single piece of furniture.
Why is 20% down the magic number?
Because below 20% most lenders require private mortgage insurance (PMI), which protects the lender if you default. PMI usually costs 0.3–1.5% of the loan amount per year — on a $320,000 loan at 0.5%, that is about $133 a month, and it buys you nothing. At 20% equity you can request PMI removal, and it must be dropped automatically at 22% based on the original amortization schedule. FHA loans work differently: mortgage insurance premiums stay for the life of the loan unless you refinance out.
Is a bigger down payment always better?
Not automatically. A larger down payment lowers your monthly payment and total interest, but it also locks cash into an illiquid asset. Keeping three to six months of expenses in reserve matters more than shaving a point off the rate — a house with a broken furnace and an empty savings account is a worse position than a slightly higher payment with a cushion. Compare the mortgage rate you avoid against what that cash could earn, and remember closing costs are sunk either way.
What credit score gets the best mortgage rate?
The best advertised rates generally go to borrowers at 740–760 and above. Below 620, conventional loans get difficult and pricing climbs sharply; FHA loans allow scores down to 580 with 3.5% down, and 500–579 with 10% down. The rate difference is not cosmetic: on a $320,000 30-year loan, the gap between a 6.5% and a 7.5% rate is roughly $210 a month, or about $76,000 over the life of the loan.