Down Payment Calculator

About the Down Payment Calculator

A down payment is a crucial first step in buying a home. It's the portion of the home's purchase price that you pay upfront, and it directly affects your loan amount and monthly mortgage payments. This calculator helps you quickly determine the down payment amount based on a home's price and a percentage.

How It Works

• Home Price: The total purchase price of the property you're considering.
• Down Payment Percentage: The percentage of the home price you plan to pay upfront. You can adjust this to see how different percentages affect your numbers.

Why Your Down Payment Matters

• Loan Amount: A larger down payment means you'll need to borrow less money, resulting in a smaller loan principal.
• Monthly Payments: A smaller loan amount typically leads to lower monthly mortgage payments.
• Private Mortgage Insurance (PMI): Lenders often require PMI if your down payment is less than 20% of the home's purchase price. This insurance protects the lender if you default on the loan and is an added monthly expense for you. Paying 20% or more allows you to avoid this extra cost.
• Interest Rates: A larger down payment can sometimes help you qualify for a lower interest rate, saving you a significant amount of money over the life of the loan.

Use this calculator to experiment with different scenarios and see how your down payment can impact one of the biggest investments you'll ever make.