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20% Down vs. 5% Down Calculator
Should you put down 5% or 20%? See the monthly payment and up-front cash for each, side by side — and how much PMI adds when you put down less.
Payments include principal & interest + estimated tax (1.1%/yr) + insurance (0.35%/yr); the 5% column adds PMI (~0.6%/yr of the loan) until you reach 20% equity. "Cash needed" adds an estimated 3% for closing costs.
Estimates for educational purposes only — not a pre-qualification, pre-approval, loan offer, or quoted rate. Actual figures depend on a lender's review of your full application. Rates and local costs are illustrative and change over time.
The real trade-off
A larger down payment lowers your loan, removes PMI at 20%, and cuts your monthly payment — but it ties up cash you might want for closing costs, moving, and emergencies. A smaller down payment gets you in sooner and keeps a cushion, at a higher monthly cost until you reach 20% equity.
There's no universally right answer. Many buyers choose the down payment that keeps a healthy emergency fund intact, even if it means paying PMI for a while.
A calculator shows the payment. It won't tell you if you're actually ready. Find out when you can realistically buy — a free 2-minute check scores your credit, income, savings, debt, and documents, then shows the one thing to fix first. No signup to start, no credit check.
Find out when you can buy →Frequently asked questions
Is 20% down required?
No. Conventional loans allow as little as 3–5% down and FHA 3.5%; 20% simply avoids PMI. The calculator shows what putting less down costs per month.
How much is PMI?
Private mortgage insurance typically runs around 0.5–1% of the loan per year when you put down under 20%, dropping off once you reach ~20% equity. This tool estimates ~0.6%/yr.
Which should I choose?
It depends on your cash reserves and goals. Keeping an emergency cushion often matters more than avoiding PMI. This is educational, not advice.