Find out how much you need to save, how long it'll take to get there, and how different down payment amounts affect your monthly payment and PMI.
| Down % | Down payment | Loan amount | Monthly P&I | PMI? |
|---|
Conventional loans require a minimum 3% down payment. FHA loans require 3.5%. VA and USDA loans allow 0% down. However, putting less than 20% down means you'll pay PMI (private mortgage insurance), typically 0.3% to 1.5% of the loan amount per year.
20% down eliminates PMI and lowers your monthly payment, but it ties up more cash that could be invested elsewhere. If your mortgage rate is below expected investment returns (~7%), a smaller down payment with the difference invested can come out ahead.
That's the trade-off. If prices rise 4% per year, a $400K home becomes $416K in one year, wiping out $12,000 of savings progress. This calculator shows your savings timeline in nominal dollars; adjust your home price target upward if you expect appreciation.