Mortgage Down Payment Calculator
Calculate the exact cash needed for your home down payment and evaluate the true cost of Private Mortgage Insurance (PMI). Compare 3%, 5%, 10%, and 20% down payment strategies to see how upfront cash influences your monthly loan balance and closing requirements.
Agreed contract price for the residential property
Percentage of purchase price funded upfront in cash
Lender origination, title insurance, appraisal, escrow prepaids
Private Mortgage Insurance premium rate (typically 0.5%–1.2% for sub-20% down)
Cash equity required specifically for the down payment
How to Use This Calculator
- Enter your target home purchase price.
- Select your planned down payment tier (e.g., 3%, 5%, 10%, or 20%).
- Include estimated closing costs to see your total "cash to close" requirement.
- Review the resulting loan balance and monthly PMI premium.
Formula & Calculation Methodology
Calculates required down payment equity and resulting loan balance. When the down payment is less than 20% of the purchase price, conventional loan guidelines mandate monthly Private Mortgage Insurance (PMI) to protect the lender against default risk.
Worked Example
$425,000 purchase price with 10% down ($8,500 closing costs, 0.75% PMI)
Frequently Asked Questions
When does Private Mortgage Insurance (PMI) automatically cancel?↓
Under the federal Homeowners Protection Act, conventional loan servicers must automatically terminate PMI once your loan balance reaches 78% of the original purchase value, provided payments are current.
Is it better to put down 20% or keep cash in savings/investments?↓
Putting 20% down avoids PMI and lowers monthly interest. However, if putting 20% down wipes out all emergency reserves, putting 10% down and retaining liquid emergency savings is often safer.
Does an FHA mortgage down payment differ from conventional PMI?↓
Yes. FHA loans require a 3.5% down payment, but mandate an upfront Mortgage Insurance Premium (1.75% of loan) plus monthly MIP that typically lasts for the entire life of the loan.
What limitation should I know about down payment gift funds?↓
Lenders permit down payment gifts from family members, but require a signed "gift letter" and bank statement verification confirming the funds do not represent an undisclosed repayable loan.
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Open calculator →Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.