How much should you put down on a house?
There's no single right amount. More down lowers your payment and your total cost, but takes longer to save and ties up cash. In this example, 20% down instead of 5% takes $60,000 more upfront, saves $569 a month at first, and costs $102,177 less in interest and PMI over 30 years.
| Down | Amount | Loan | PMI a month | Payment a month | Cash needed | Total interest | Total PMI |
|---|---|---|---|---|---|---|---|
| 3% | $12,000 | $388,000 | $194 | $2,646 | $24,000 | $494,875 | $27,936 |
| 5% | $20,000 | $380,000 | $190 | $2,592 | $32,000 | $484,668 | $25,650 |
| 10% | $40,000 | $360,000 | $180 | $2,455 | $52,000 | $459,164 | $19,620 |
| 15% | $60,000 | $340,000 | $170 | $2,319 | $72,000 | $433,652 | $12,750 |
| 20% | $80,000 | $320,000 | $0 | $2,023 | $92,000 | $408,141 | $0 |
Total PMI assumes it runs to the scheduled automatic date. The PMI calculator shows when you can ask to end it sooner.
How do you calculate the down payment on a house?
Multiply the home price by the percentage you plan to put down. Your loan is what's left. On a $400,000 home, 10% down is $40,000, which leaves a $360,000 loan.
Down payment = home price × down payment % ; loan = home price − down payment| Home price | 3% | 5% | 10% | 15% | 20% |
|---|---|---|---|---|---|
| $200,000 | $6,000 | $10,000 | $20,000 | $30,000 | $40,000 |
| $300,000 | $9,000 | $15,000 | $30,000 | $45,000 | $60,000 |
| $400,000 | $12,000 | $20,000 | $40,000 | $60,000 | $80,000 |
| $500,000 | $15,000 | $25,000 | $50,000 | $75,000 | $100,000 |
| $750,000 | $22,500 | $37,500 | $75,000 | $112,500 | $150,000 |
The cash you need is more than the down payment, because closing costs come on top. The 3% used here is only an example. The closing cost calculator lets you itemize yours from a Loan Estimate.
How long will it take to save for a down payment?
Divide what you still need by what you save each month. With $10,000 saved and $1,500 a month, the $32,000 for 5% down with closing costs takes 1 yr 3 mos. The $92,000 for 20% takes 4 yrs 7 mos.
| Saving a month | 3% down | 5% down | 10% down | 15% down | 20% down |
|---|---|---|---|---|---|
| $500 | 2 yrs 4 mos | 3 yrs 8 mos | 7 yrs | 10 yrs 4 mos | 13 yrs 8 mos |
| $1,000 | 1 yr 2 mos | 1 yr 10 mos | 3 yrs 6 mos | 5 yrs 2 mos | 6 yrs 10 mos |
| $1,500 | 10 mos | 1 yr 3 mos | 2 yrs 4 mos | 3 yrs 6 mos | 4 yrs 7 mos |
| $2,500 | 6 mos | 9 mos | 1 yr 5 mos | 2 yrs 1 mo | 2 yrs 9 mos |
A rising price moves your goal while you save. At 4% home price growth a year, used here as an assumption, that 20% goal takes 5 yrs 11 mos instead of 4 yrs 7 mos. The advanced options let you test this, along with interest on your savings and a cash reserve to keep after closing.
Do you need 20% down to buy a house?
No. The Consumer Financial Protection Bureau (CFPB) says that in most cases you need at least 3%, and that many loan types and lenders want 5% or more. Below 20% on a conventional loan, you may have to pay PMI. These are the program floors we could confirm from primary sources.
| Loan type | Lowest down payment | What to know | Source |
|---|---|---|---|
| Conventional | 3% | Fannie Mae's HomeReady allows up to 97% loan-to-value on one-unit principal residences, when approved through its automated system. Lower limits apply otherwise. | CFPB, Fannie Mae |
| FHA | 3.5% | Has its own mortgage insurance premiums rather than PMI. | HUD |
| VA | 0% | For eligible borrowers, if the price isn't above the appraised value. No PMI, but there may be a one-time funding fee. | VA |
This calculator models conventional loans. To compare FHA and VA costs, use the mortgage calculator. The CFPB also notes that low down payment options usually cost more, so compare the full cost, not only the cash today.
When a bigger down payment is the wrong call
Extra cash put down saves you interest at your loan rate, with no market risk. With no PMI in the picture, the extra money saves the equivalent of 6.5% a year, which is simply the rate. PMI adds to it: going from 5% to 20% down in this example comes to about 9.7% a year if you keep the loan for the full term. That's a useful figure to weigh against what your savings could earn or a high-rate debt you could pay off.
The catch is access. As the CFPB puts it, once you put money into your home, it's not easy to get it back out, and borrowing against your equity costs interest. Draining your savings to reach 20% can leave you exposed if a roof or a job goes. That's why this tool lets you set a reserve and counts it as cash you need.
Watch the thresholds too. In this example, 19% down has a loan payment only $25 above 20% down, but adds $162 a month of PMI. If you're close to 20%, the last 1% can be worth more than it looks. The CFPB also says lenders often set rates in 5% steps, so ask your lender for quotes on both sides of a line. A HUD-approved housing counselor can go through the trade-offs with you, often at little or no cost.
Common questions
What is a good down payment on a house?
The CFPB says you'll generally save the most at 20% or more, and can often save at 10%. A good amount is one that leaves you with an emergency fund. Our emergency fund calculator can size that reserve.
Does the down payment include closing costs?
No. They're separate, and your Estimated Cash to Close on a Loan Estimate combines them, less any deposit and seller credits. This tool adds closing costs as a share of the price, and you can change that share.
Should I use the same rate for every option?
Start there, then replace it with real quotes. Rates can change with your down payment, so a single rate may understate the cost of low down payments. PMI rates are in the options table so you can enter a quote for each one.
Is this for a house or a car?
A house, since it includes PMI and closing costs. For a vehicle, use the auto loan calculator.
Can I use gift money or assistance?
This tool doesn't check program rules. If gift funds or assistance count as your savings, add them to what you've saved, then ask your lender whether your loan allows them.
Sources
- Determine your down payment · Consumer Financial Protection Bureau
- What is private mortgage insurance? · Consumer Financial Protection Bureau
- Loans (FHA down payment) · U.S. Department of Housing and Urban Development
- VA purchase loan · U.S. Department of Veterans Affairs
- Selling Guide B5-6-02: HomeReady Mortgage Underwriting Methods and Requirements · Fannie Mae