$
%
%
Annual rate as % of home value
$
%
Annual PMI as % of loan (typically 0.3-1.5%)
Total PMI cost avoided by putting 20% down instead of 3%
Compare 5 common down payment scenarios
$27,000
$3,613
$26,736
$36,000
$3,551
$24,759
$58,500
$3,396
$18,900
$81,000
$3,240
$12,272
$103,500
$2,935
$0
Upfront cash required vs first year housing costs
How PMI affects your total cost at each down payment level
3% Down
$26,736
5% Down
$24,759
10% Down
$18,900
15% Down
$12,272
20% Down = $0 PMI
What these numbers mean for you
3% down: Lowest upfront cost ($27,000), but you'll pay $26,736 in PMI over 12 years
20% down: No PMI, saves $678/month, but requires $103,500 upfront
PMI adds up, but putting down less lets you keep cash for emergencies or investments
The "right" amount depends on your cash reserves, emergency fund, and other investment opportunities
On a $450,000 home, putting 20% down ($90,000) saves you $26,736 in PMI and $678/month on your payment. However, if you need to preserve cash for emergencies or other investments, a lower down payment may make sense despite the PMI cost.
Here are the exact formulas behind your numbers. No black boxes — just math.
Down Payment Amount
Loan Amount
PMI Threshold
Monthly P&I
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