Down Payment Calculator
Down payment breakdown — loan amount, LTV, and what PMI will cost you.
Result
Loan amount
$0
Down payment
$0
Down payment %
—
LTV (loan-to-value)
—
Monthly PMI
$0
Extra to avoid PMI
$0
The 20% threshold
Put down less than 20% of the purchase price and conventional lenders require Private Mortgage Insurance (PMI) — typically 0.3%–1.5% of the loan, paid monthly until you reach 22% equity (78% LTV).
It's an insurance policy that protects the lender if you default. You pay it; you get nothing for it.
Should you put down 20%?
Conventional wisdom says yes, to avoid PMI. But if mortgage rates are low and you can earn higher returns elsewhere, putting down only 5–10% and investing the rest can come out ahead — even after paying PMI for a few years. Run the numbers both ways.
FHA loans go lower
FHA loans allow as little as 3.5% down but charge mortgage insurance for the life of the loan (it's structural, not equity-based). Useful for first-time buyers without a big down payment; not always the cheapest long-term option.