How Much Down Payment Do You Need?

It depends on your loan program and goals — conventional loans commonly go as low as 3–5% down, FHA as low as 3.5%, and VA and USDA loans can allow 0% down for eligible borrowers. There is no single "correct" amount: a smaller down payment preserves cash but usually means PMI/mortgage insurance and a larger loan; a bigger down payment reduces monthly cost but ties up more cash. Use the comparison table below to see the actual dollar tradeoffs for your numbers.

Use the quick-select percentages above the calculator, or the Down Payment Comparison table below, to see the exact down payment dollars, loan amount, LTV, PMI, monthly cost and cash to close side by side for each percentage.

For conventional loans, this calculator estimates PMI as your loan amount times an annual rate (a Reaixo estimate, not a lender quote — typically well under 1% annually, but it varies by credit score, LTV, loan type and other factors). Enter your own lender-quoted PMI to replace the estimate. FHA, USDA and other programs use different mortgage-insurance structures — enter your lender-quoted monthly amount for those.

For conventional loans, you can generally request cancellation once your balance reaches 80% of the home's original value, and your servicer is generally required to automatically terminate PMI at 78% — both estimated from your amortization schedule below, and both still subject to your servicer's requirements (current payments, sometimes a new appraisal). FHA mortgage insurance premium (MIP) often does not cancel automatically at all; USDA and other programs follow their own rules. This calculator does not apply conventional PMI rules to those programs.

The PMI Timeline section below estimates a request-eligibility date and an automatic-termination date based on your loan amount, rate, term and original home value. Extra principal payments can move these dates earlier — model that in the "Extra Payments" toggle in that section.

On a conventional loan, PMI generally is not required once your down payment reaches 20% (80% LTV) at closing. VA loans have no monthly PMI/mortgage insurance regardless of down payment. FHA and USDA mortgage insurance follow different rules and are not necessarily avoided by any down payment amount.

The Down Payment Comparison table below lines these up side by side: down payment dollars, loan amount, LTV, principal & interest, PMI, total monthly cost, cash to close, and total interest. The Incremental Analysis section then isolates exactly what moving between any two of them costs and saves.

Not necessarily. A larger down payment generally reduces your loan balance, monthly cost, and total interest, but it also requires more cash today and reduces the savings you have left for other goals or emergencies. This calculator shows the tradeoffs — it does not recommend an amount, since that depends on your own finances and priorities.

No. Estimated market appreciation reaching 20% equity is a scenario assumption, not the same as your loan balance actually reaching that ratio on your amortization schedule. Removing PMI based on appreciation alone (before your scheduled balance gets there) typically requires a new appraisal and your servicer's approval — it is not automatic.

Your down payment is only one piece of the cash you need at settlement. Cash to close also includes closing costs and prepaid/escrow items, minus any deposits (like earnest money) you already paid and any seller or lender credits. See the Main Results and Cash to Close sections below for your specific numbers.

These are educational estimates based on the numbers you enter. Actual PMI rates, closing costs, escrow requirements, appreciation and PMI-removal timing vary by lender, investor, servicer, location and your specific loan file. Verify final figures with your lender's Loan Estimate, Closing Disclosure, and your servicer's PMI-removal requirements.