See your down payment amount, loan size, and monthly payment at any percentage — and find out when you clear the 20% PMI threshold.
How Much Should You Put Down on a House?
Your down payment is the cash you pay upfront, and the rest is financed with a mortgage. A larger down payment reduces your loan, lowers your monthly payment, and can eliminate private mortgage insurance. But tying up too much cash can leave you without a cushion for moving costs, repairs, and emergencies.
The 20% Rule and PMI
Putting down at least 20% of the purchase price lets you avoid private mortgage insurance (PMI) on a conventional loan. PMI typically costs 0.5% to 1.5% of the loan amount per year and protects the lender, not you. On a $320,000 loan that can add $1,600 to $4,800 annually until you reach 20% equity.
Low Down Payment Options
You do not always need 20%. Conventional loans allow as little as 3% down, FHA loans 3.5%, and VA and USDA loans 0% for eligible buyers. These open the door sooner but mean a larger loan, a higher payment, and mortgage insurance until you build equity.
Tip: Do not drain your savings to hit 20%. Keep three to six months of expenses in reserve after closing. A slightly higher payment with PMI is often safer than buying with no financial buffer.
Frequently Asked Questions
How much down payment do I need to buy a house?
It depends on the loan. Conventional loans can require as little as 3% down, FHA loans 3.5%, and VA and USDA loans 0% for eligible buyers. Putting 20% down lets you avoid private mortgage insurance.
What is PMI and how do I avoid it?
Private mortgage insurance protects the lender if you default and is usually required when you put down less than 20% on a conventional loan. You avoid it by putting at least 20% down, and you can cancel it once you reach 20% equity.
Is a bigger down payment always better?
A bigger down payment lowers your loan, payment, and interest, but it also ties up cash. Keep an emergency reserve after closing rather than putting every dollar toward the down payment.
Does the down payment include closing costs?
No. Closing costs are separate and typically run 2% to 5% of the purchase price. Budget for them on top of your down payment so you are not caught short at closing.
How is the monthly payment calculated?
This calculator shows monthly principal and interest using the standard mortgage amortization formula. Your actual payment will also include property taxes, homeowners insurance, and PMI if applicable.