How much down payment do I need?

20% down avoids private mortgage insurance (PMI) and gives the best rates, but many programs allow as little as 3% to 10%. Below 20%, you will typically pay PMI.

What is PMI and when is it required?

PMI (Private Mortgage Insurance) protects the lender when your down payment is below 20%. It adds a monthly cost until you build 20% equity.

Down Payment Calculator

See the effect of your down payment on the loan and payment.

Home Purchase Details

Home Price ($)

Down Payment (%)

Interest Rate (% p.a.)

Loan Term (years)

yrs

PMI Rate (% of loan / yr)

Property Tax (% of price / yr)

Home Insurance (% of price / yr)

Total Monthly Payment

—

Down Payment

—

Loan Amount

—

PMI (monthly)

—

Total Interest

—

The 20% down payment rule

Putting 20% down gives you the best rates and avoids PMI entirely. If you put down less, you will typically pay PMI until your equity reaches 20%. A larger down payment also means a smaller loan, so you pay far less interest over the life of the mortgage.

Down Payment FAQ

Should I put 20% down or invest the money instead?▶

If avoiding PMI and lower payments matter more than having cash available, 20% down is great. If you can earn more on investments than your mortgage costs, a smaller down payment can be smart — just factor in PMI.

Can I buy a house with no down payment?▶

Yes — VA loans allow 0% down for eligible borrowers, and some programs allow low or zero down payments. You will usually pay PMI or higher rates in exchange.