Mortgage Example
20% Down Payment — How Much Do You Need?
Calculate the down payment required for homes at various prices and see how it affects your mortgage.
Scenario
20% down payment on homes priced $250k–$600k.
Inputs
Down Payment20%
Results
$250k Home — Down Payment$50,000
$350k Home — Down Payment$70,000
$500k Home — Down Payment$100,000
$500k Home — Mortgage$400,000
Explanation
20% down eliminates PMI (typically $100–200/month) and lowers the loan amount significantly. On a $500k home, 20% down means a $400k mortgage. Saving for down payment while renting is a key milestone in the home-buying journey.
Key Takeaways
- FHA loans allow 3.5% down but require mortgage insurance.
- First-time buyer programs may offer down payment assistance.
- Time-in-market matters — don't delay purchase waiting for 20%.