Down Payment Calculator
Enter your home price and see how your down payment affects monthly payment, PMI, and total cost. Compare standard tiers from 3% to 20% instantly.
1 Home Details
Your Monthly Payment (P&I + PMI)
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Down Payment %
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Down Payment Tier Comparison
Based on your home price and interest rate
| Down % | Down Amount | P&I | PMI/mo | Total/mo |
|---|---|---|---|---|
| Enter home details above | ||||
Monthly Payment by Down Payment %
How Much Should You Put Down on a Home?
The down payment is one of the biggest decisions in home buying. A larger down payment lowers your monthly payment, eliminates PMI, and reduces total interest — but requires more cash upfront. The right amount depends on your savings, loan program, and financial goals.
3% down is the minimum for many conventional loans and is popular with first-time buyers who qualify for programs like Fannie Mae HomeReady or Freddie Mac Home Possible. 5–10% down reduces PMI cost and improves your loan terms. 20% down eliminates PMI entirely and typically secures the best interest rates.
Understanding PMI
Private Mortgage Insurance (PMI) is required by conventional lenders when your down payment is below 20%. It protects the lender — not you — in case of default. PMI typically costs 0.5%–1.5% of the loan amount per year (around $85–$250/month on a $300,000 loan). PMI can be removed once you reach 20% equity, either through payments or appreciation.
Use the Mortgage Calculator to model your full payment including property taxes and insurance, or the Affordability Calculator to see your maximum purchase price based on income.
Minimum Down Payment by Loan Type
The minimum down payment depends on your loan program, credit score, and the property price. Here's a full breakdown of US loan programs:
| Loan Type | Min. Down | Key Requirement | PMI/MIP? |
|---|---|---|---|
| Conventional | 3% | 620+ credit score | Yes — until 80% LTV |
| FHA Loan | 3.5% | 580+ credit score | Yes — life of loan (if <10% down) |
| VA Loan | 0% | Military/veteran eligibility | No PMI (funding fee instead) |
| USDA Loan | 0% | Rural area; income limits | Annual guarantee fee |
| Conventional (no PMI) | 20% | 620+ credit score | No PMI required |
Example: $450,000 Home at 7.0% Rate
Here's exactly how your down payment choice affects monthly cost on a $450,000 purchase (30-year term, 7.0% rate, 740 credit score):
| Down Payment | Cash Needed | Monthly P&I | Monthly PMI | Total/mo |
|---|---|---|---|---|
| 3% | $13,500 | $2,904 | +$291 | $3,195 |
| 10% | $45,000 | $2,694 | +$169 | $2,863 |
| 20% (no PMI) | $90,000 | $2,395 | $0 | $2,395 |
The difference between 3% and 20% down is $800/month. Whether the larger down payment makes sense depends on your available savings, investment returns, and job security.
Canada: CMHC Mortgage Default Insurance
In Canada, down payments below 20% require mortgage default insurance from CMHC. The premium is added to your mortgage balance and depends on your loan-to-value ratio:
| Down Payment | LTV | CMHC Premium | On C$600k |
|---|---|---|---|
| 5% (minimum) | 95% | 4.00% | C$22,800 |
| 10–14.99% | 85–90% | 3.10% | C$16,740 |
| 15–19.99% | 80–85% | 2.80% | C$14,112 |
| 20%+ | ≤80% | 0% | C$0 |
CMHC premium rates per published CMHC tables. Premiums are subject to provincial sales tax in QC, ON, and SK.
Frequently Asked Questions
Is a 20% down payment required to buy a home?
No. In the US, you can buy with as little as 3% down on a conventional loan, 3.5% on an FHA loan, or 0% on VA and USDA loans. The 20% figure avoids PMI — it is not a legal requirement. In Canada, the minimum is 5% on purchases up to C$500,000.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) protects the lender if you default on a conventional loan with less than 20% equity. Under the Homeowners Protection Act (HPA), you can request PMI cancellation once your loan balance reaches 80% of the original purchase price, and lenders must automatically cancel it at 78%.
Can I use gift funds for a down payment?
Yes, in most cases. Conventional and FHA loans allow gifted funds from family members — the donor must sign a gift letter confirming no repayment is expected. VA and USDA loans also allow gifts. Lenders require documentation showing the source of the funds.
Are there down payment assistance programs?
Yes. Most US states have down payment assistance (DPA) programs through state housing finance agencies, offering grants or low-interest second mortgages for first-time buyers. Income limits typically apply. Search your state's housing finance agency or HUD's approved counselor directory for available programs.
All calculations are estimates for informational purposes only. Consult a licensed mortgage professional before making borrowing decisions. Full Disclaimer.