How Much Should I Put Down on a House? | Down Payment Calculator
Compare 3%, 5%, 10%, 15%, and 20% down payments side-by-side. See PMI costs, cash requirements, and total cost to find your optimal down payment strategy.
How Much Should I Put Down on a House?
Compare down payment options from 3% to 20%. See exactly how PMI, monthly payments, and total costs change at each level to find your optimal strategy.
Home Details
Typically 0.3% - 1.5% for down payments under 20%
Enter your information and click "Compare Down Payment Options" to see your results.
What This Calculator Answers
The down payment decision isn't just "put down as much as you can." It's a trade-off between PMI costs, opportunity cost of tied-up capital, and monthly cash flow. This calculator compares all common down payment levels so you can see the actual dollar difference.
For each option, you'll see the cash required at closing, monthly payment (including PMI where applicable), total PMI paid over time, and when you'd reach 20% equity to drop PMI. Armed with these numbers, you can make a decision based on your actual financial situation—not rules of thumb.
When to Put Down 20%
- ✓You have the cash without draining reserves — 20% down plus 6 months emergency fund plus closing costs plus moving expenses.
- ✓PMI rates are high for your situation — Lower credit scores mean higher PMI. If you'd pay 1%+ annually, 20% down saves significantly.
- ✓You want the lowest possible monthly payment — 20% down means no PMI and a smaller loan, giving you maximum cash flow flexibility.
When to Put Down Less Than 20%
- →Home prices are rising faster than you can save — If prices rise 5% annually and you save 3%, you're falling behind. Buy now with less down.
- →You'd deplete your emergency fund — Never sacrifice financial security for a larger down payment. Unexpected repairs happen.
- →You can invest the difference at higher returns — If your mortgage is 6% and you expect 8% investment returns, keeping cash invested may win mathematically.
- →PMI is cheap for your credit score — With excellent credit, PMI might be 0.3% annually. That's often worth paying to keep cash available.
Frequently Asked Questions
How much should I put down on a house?
It depends on your cash reserves, PMI costs, and opportunity cost. 20% avoids PMI but ties up significant capital. 10-15% balances PMI cost with keeping cash available. 3-5% gets you in sooner but costs more monthly. Use this calculator to compare the total cost of each option.
Is it better to put 20% down to avoid PMI?
Not always. PMI typically costs 0.3-1.5% of the loan annually and drops off at 20% equity. If PMI is $150/month and you'd need to save 2 more years to reach 20%, you might pay less total by buying now with 10% down. Calculate your specific break-even.
What is the minimum down payment for a house?
Conventional loans allow 3% down. FHA loans require 3.5%. VA and USDA loans offer 0% down for eligible borrowers. However, lower down payments mean higher monthly costs due to PMI and a larger loan balance.
Should I use all my savings for a down payment?
No. Keep 3-6 months of expenses as an emergency fund, plus reserves for moving costs, immediate repairs, and furniture. Draining your savings for a larger down payment leaves you vulnerable to unexpected expenses.
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