MORTGAGE
Your down payment decides your loan size, your monthly payment and whether you pay mortgage insurance. This calculator shows the amount you need for your target percentage and how long it will take you to save it.
Enter the home price, your down payment goal and how much you save each month to see how much you need and how long it will take to save it.
Total cash needed is the down payment plus closing costs, estimated at 3% of the home price. This is an estimate for planning only and is not financial advice.
Say you are aiming for a $400,000 home and want to put 20% down. The down payment needed is $80,000. Estimated closing costs at 3% of the price add $12,000, so the total cash needed is $92,000, not just the down payment itself.
If you have $25,000 saved already, you still have $55,000 to save. Putting away $900 a month in a savings account paying 4% APY, the interest adds a little each month on top of your deposits, and you reach the $80,000 down payment in 52 months, around February 2031.
Run the same figures with a higher monthly amount and watch the target date. Every extra $100 a month pulls the date forward, because the balance grows faster and the interest has more to work on. The date moves more than most people expect. The Consumer Financial Protection Bureau offers free guides for home buyers and borrowers.
The down payment is a percentage of the home price. On a $400,000 home, a 20% down payment is $80,000, and 20% is the level that avoids private mortgage insurance (PMI) on conventional loans.
Smaller down payments of 3 to 5% are allowed on many loans, and they can help you buy sooner. However, they mean a bigger loan, a higher monthly payment and PMI on top until you have built up enough equity.
The cash you need is more than the down payment alone, because closing costs and the cost of moving in come on top. That is why this calculator shows total cash too, with closing costs estimated at 3% of the price as well as the down payment itself.
Putting down 20% avoids PMI, but many buyers put down 3 to 5%. The right amount balances the monthly payment and PMI against keeping some savings back for safety.
Private mortgage insurance (PMI) protects the lender if you stop paying. On conventional loans it is usually removed once you reach 20% equity in your home.
No. Keep an emergency fund, plus money for closing costs and moving, separate from your down payment, because a house with no cash reserve is risky if something goes wrong.
Closing costs are typically 2 to 5% of the loan amount or the home price, depending on the loan and where you live. This calculator uses 3% of the price as a middle estimate.