Mortgage Guide

Affordability

Choosing a Down Payment

Published by the Mortgage Guide editorial team. Rate assumptions and content updated October 2026. This page is educational. It is not a loan offer, approval, or personalized financial advice.

Cash required is more than the percent

Five percent of $400,000 is $20,000. Closing costs sit on top. The down-payment table adds the closing percent you choose.

A gift, assistance program, or seller credit can change the cash you bring. The table does not assume any of those.

PMI is the cost of borrowing the rest

Below 20% down, the model estimates PMI at 0.50% of the loan per year. That is not a quote.

FHA, VA, and USDA replace that conventional PMI line with their own fees. Compare those calculators before assuming 20% is required.

What changes as the percent rises
Down paymentIn this model
5% to 15%PMI estimated
20%PMI not applied

Calculators

Related guides

Sources

Common questions

Is 20% required to buy?

No. It is the point where this conventional model stops estimating PMI.

Should I put every dollar down?

Not if it leaves no reserve for repairs or a job gap. The calculator does not measure your emergency fund.