Down Payment
Calculate how much to save for a down payment
Calculators on this site provide estimates for general informational purposes only. They are not financial, investment, tax, or legal advice. Consult a qualified professional before making any decision.
How to use Down Payment
- 1Enter the home price you are considering and your target down-payment percentage.
- 2Add your available savings to compare against the required amount.
- 3See the dollar down payment needed and whether you meet common 20 percent thresholds that avoid mortgage insurance.
Why the down payment matters
Down payment = Home price x percentage; Loan = Home price - Down paymentA larger down payment lowers the loan amount, reduces monthly payments, and can remove the need for private mortgage insurance.
Smaller down payments are allowed by many programs but usually cost more over time through insurance and interest on a bigger loan.
Frequently asked questions
Is 20 percent always required?
No. Many loans allow 3 to 5 percent down, but below 20 percent you typically pay mortgage insurance until you build enough equity.
Should I drain savings for a bigger down payment?
Keep a reserve for closing costs and emergencies; an empty emergency fund is riskier than a slightly smaller down payment.
Do gifts count toward the down payment?
Lenders often accept gifted funds but require a signed gift letter stating the money need not be repaid.
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