What is PMI and how much does it cost?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI typically costs 0.5% to 1% of your loan amount per year, added to your monthly payment. On a $280,000 loan (10% down on a $350,000 home), PMI would cost approximately $117-$233 per month. PMI can be removed once you reach 20% equity.

What are closing costs and how much should I budget?

Closing costs are fees charged at the time of purchase, including appraisal fees ($300-$600), title insurance ($500-$3,500), loan origination fees (0.5-1% of loan), attorney fees, recording fees, and prepaid taxes and insurance. Total closing costs typically range from 2% to 5% of the home price. On a $350,000 home, budget $7,000 to $17,500 for closing costs in addition to your down payment.

Can I use gift money for my down payment?

Yes, most loan programs allow gift funds for down payments. Conventional loans require a gift letter stating the money is a gift, not a loan. FHA loans allow 100% of the down payment to come from gift funds. The donor is typically required to be a family member, and you will need to document the gift with bank statements and a signed gift letter.

How long does it take to save for a down payment?

It depends on the home price, your target down payment percentage, and how much you can save monthly. For example, saving $70,000 (20% of $350,000) at $1,500/month takes about 47 months (nearly 4 years). At $2,000/month, it takes 35 months. Use a high-yield savings account earning 4-5% APY to accelerate your timeline.

Is it better to put 10% or 20% down?

Putting 20% down avoids PMI (saving $100-$250/month), gets you better interest rates, and results in lower monthly payments. However, 10% down lets you buy sooner and keep more cash as an emergency fund. If the alternative is waiting 3+ years to save the extra 10%, buying sooner at 10% down often makes sense in appreciating markets.

What first-time buyer programs are available in 2026?

Many programs help first-time buyers: FHA loans (3.5% down, 580+ credit score), Fannie Mae HomeReady (3% down, income limits apply), Freddie Mac Home Possible (3% down), VA loans (0% down for veterans), USDA loans (0% down in rural areas), and state/local down payment assistance programs that offer grants or forgivable loans. Check your state housing finance agency for local programs.

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Down Payment Calculator

Plan and save for your home down payment

Dernière vérification : mars 2026Précision vérifiée

Planning to buy a home? Calculate how much you need to save for a down payment, estimate closing costs, and build a monthly savings plan to reach your goal. See how different down payment percentages affect your mortgage payment and whether you will need PMI.

Quick example: On a $400,000 home, a 20% down payment is $80,000. With estimated closing costs of $12,000 (3%), you need $92,000 total. Saving $1,533/month, you can reach that goal in 5 years. A 10% down payment ($40,000) lowers the barrier but adds PMI of roughly $167/month.

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Down Payment Percentage

Home Price

Down Payment

Current Savings

Months to Save

Closing Cost Estimate

Typically 2-5% of home price

$70,000

Loan Amount: $280,000

Closing Costs: $10,500

Total Cash Needed: $80,500

Still Need to Save: $65,500

Monthly Savings Needed

$1,819.44

for 36 months to reach your goal

Home Price

$350,000

Down Payment

$70,000

Loan Amount

$280,000

Closing Costs

$10,500

Down %	Down Payment	Loan Amount	PMI?
3%	$10,500	$339,500	Yes
5%	$17,500	$332,500	Yes
10%	$35,000	$315,000	Yes
15%	$52,500	$297,500	Yes
20%	$70,000	$280,000	No
25%	$87,500	$262,500	No

Cette calculatrice fournit des estimations à titre informatif uniquement. Les résultats réels peuvent varier. Consultez un conseiller financier pour des conseils personnalisés.

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Down Payment Calculator for Homebuyers

How to Use This Calculator

Enter the home price — Use the median home price in your target area. The national median in 2026 is approximately $420,000.
Choose your down payment percentage — Common options are 3%, 5%, 10%, or 20%. A 20% down payment eliminates private mortgage insurance (PMI).
Review closing costs — Typically 2–5% of the home price. The calculator estimates 3% by default.
Set your savings timeline — Enter how many months or years you plan to save to see the required monthly savings amount.

The Formula Explained

Down Payment = Home Price × Down Payment Percentage

Closing Costs = Home Price × Closing Cost Rate (typically 2–5%)

Total Savings Needed = Down Payment + Closing Costs

Monthly Savings Required = Total Savings Needed ÷ Number of Months

Example: $350,000 home, 20% down, 3% closing costs, 4-year timeline: Down payment = $70,000. Closing costs = $10,500. Total = $80,500. Monthly savings = $80,500 ÷ 48 = $1,677/month.

Common Scenarios

Home Price	Down Payment %	Down Payment	Closing Costs (3%)	Total Needed	Monthly Savings (5 yr)
$250,000	3%	$7,500	$7,500	$15,000	$250
$250,000	20%	$50,000	$7,500	$57,500	$958
$400,000	5%	$20,000	$12,000	$32,000	$533
$400,000	20%	$80,000	$12,000	$92,000	$1,533
$600,000	10%	$60,000	$18,000	$78,000	$1,300
$600,000	20%	$120,000	$18,000	$138,000	$2,300

Important Considerations

PMI costs add up. If you put down less than 20%, lenders require private mortgage insurance. PMI typically costs 0.5–1% of the loan amount per year ($100–$333/month on a $400,000 loan). You can request PMI removal once you reach 20% equity.
FHA loans allow 3.5% down. Federal Housing Administration loans are popular for first-time buyers. The trade-off is an upfront mortgage insurance premium (1.75% of loan) plus annual premiums for the life of the loan.
VA and USDA loans offer 0% down. If you qualify as a veteran or buy in a rural area, you may be able to skip the down payment entirely.
Closing costs are non-negotiable. Even with seller concessions, you will have appraisal fees, title insurance, attorney fees, and prepaid items (taxes, insurance). Budget at least 2–3% of the purchase price.
Keep an emergency fund separate. Do not drain your entire savings for the down payment. Maintain 3–6 months of expenses as a reserve after closing.
Consider high-yield savings accounts. Earn 4–5% APY on your down payment savings in 2026 while keeping the funds liquid and FDIC insured.

Sources

Median home prices: National Association of Realtors (NAR) 2026 data
PMI rates: Urban Institute Housing Finance Policy Center
Closing cost averages: ClosingCorp National Closing Cost Report
FHA/VA loan requirements: U.S. Department of Housing and Urban Development (HUD)

Related Calculators

Mortgage Calculator — Calculate monthly mortgage payments
Affordability Calculator — Find out how much house you can afford
Rent vs Buy Calculator — Compare the cost of renting vs buying
Compound Interest Calculator — Grow your down payment savings

Questions fréquemment posées

The traditional recommendation is 20% to avoid Private Mortgage Insurance (PMI), but many buyers put down less. FHA loans require as little as 3.5% down, conventional loans start at 3% for first-time buyers, and VA loans offer 0% down for eligible veterans. The right amount depends on your savings, monthly budget, and how quickly you want to build equity.