What You Need to Know

💡Why This Calculator Matters

Your down payment size affects monthly payment, interest rate, PMI, and even which loans you qualify for. It's a crucial home-buying decision.

👤Who Needs This

Homebuyers deciding how much to put down, savers setting goals, or anyone comparing down payment scenarios.

🎯Key Insight

20% down isn't required - it just avoids PMI. First-time buyers often put down 6-7% on average.

⚠️Common Mistake

Draining all savings for a down payment. Keep 3-6 months expenses as emergency fund, plus money for closing costs and moving.

Pro Tip

Explore down payment assistance programs. Many states, cities, and employers offer grants or low-interest loans for first-time buyers.

📊Real-World Example

Scenario: $350,000 home purchase

10% down ($35,000) vs. 20% down ($70,000)

10% down: $315,000 loan + PMI (~$131/month). 20% down: $280,000 loan, no PMI. But investing that $35,000 difference at 7% could grow to $70,000 in 10 years.