How much should I put down?
Down payment comparison
Not "how much do I need" — that answer is 3 percent, or zero if you are a veteran. The real question is what each tier costs you monthly against what it costs you in cash, and where your particular trade-off sits.
Enter what you have saved and the tiers you cannot reach are marked. The honest advice usually sits one tier below your maximum, because closing with nothing in the bank is its own risk.
2–5% is typical
| Down | Down payment | Loan amount | Est. MI | Monthly P&I + MI | Cash to close |
|---|---|---|---|---|---|
| 3%Conventional, qualifying first-time buyers | $12,000 | $388,000 | $243 | $2,631 | $24,000 |
| 3.5%FHA minimum at 580+ credit | $14,000 | $386,000 | $177 | $2,554 | $26,000 |
| 5%Standard conventional minimum | $20,000 | $380,000 | $174 | $2,514 | $32,000over your cash |
| 10%Lower MI, better pricing | $40,000 | $360,000 | $105 | $2,322 | $52,000over your cash |
| 20%No mortgage insurance | $80,000 | $320,000 | — | $1,970 | $92,000over your cash |
With $30,000 saved
The largest down payment your cash supports at this price is 3.5%, leaving nothing in reserve. Putting less down and keeping a cushion is often the better call — closing with an empty account is its own kind of risk.
The 20 percent question
Twenty percent removes mortgage insurance — it has never been a requirement to qualify. On a conventional loan you can also request removal at 20 percent equity later, and the servicer must terminate it automatically at 78 percent loan-to-value. Waiting years to save the difference has a cost too.
An estimate for planning. Mortgage insurance figures are illustrative — real MI is priced off credit score, loan-to-value and term. Monthly figures exclude property taxes, homeowners insurance and HOA dues. Not a commitment to lend and not a rate quote.
Talk through the trade-off
Bring me your savings figure and your target price and I will tell you which tier I would use in your position, and why.
What it accounts for
- Down payment and loan amount at each tier
- Estimated monthly mortgage insurance, which falls as the down payment rises and disappears at 20 percent
- Total cash to close, including a closing cost percentage you control
- Which tiers your savings actually cover
What it cannot know
- Mortgage insurance figures are illustrative tiers rather than quoted premiums.
- Monthly figures show principal, interest and mortgage insurance — not taxes, insurance or HOA.
- It does not model down payment assistance, which changes the picture entirely where you qualify.
Questions
About this calculation
No, and you never did. Twenty percent removes mortgage insurance. Conventional loans start at 3 percent for qualifying first-time buyers, FHA at 3.5, and VA and USDA can be zero.
Depends what the cash is for. An emergency fund after closing is worth more than a slightly smaller payment. Paying down high-interest debt often beats both, and it can raise your borrowing power at the same time.
Yes, on every major program, with a signed gift letter and a documented transfer. Move it by wire or cashier’s check, never as cash deposits, so it can be sourced.
Output is an estimate for illustration and planning only, based on the figures you enter. It is not an offer of credit, a rate quote or a commitment to lend, and mortgage insurance figures are illustrative rather than quoted premiums. This is not an offer to enter into an agreement or a commitment to lend. Not all applicants will qualify. Information and rates are subject to change without notice. All loans are subject to credit review and approval. Fairway Home Mortgage is a division of Fairway Independent Mortgage Corporation. NMLS Entity ID #2289.
Next step
Numbers you can actually make an offer with.
A pre-approval takes about 24 hours from a complete document set and costs nothing. It replaces every estimate here with a figure a listing agent will take seriously.