Down Payment Savings
See how long it will take to save for your down payment at your current savings rate.
Frequently Asked Questions
What's a good down payment percentage?
A 20% down payment helps you avoid Private Mortgage Insurance (PMI) and is considered ideal. However, many programs allow 3-10% down. The larger your down payment, the lower your monthly payment and total interest.
Can I buy with less than 20% down?
Yes. FHA loans require as little as 3.5% down. Conventional loans typically require 3-20% down, but you'll pay PMI. VA and USDA loans may offer 0% down options for eligible buyers.
What does PMI cost?
PMI typically costs 0.55-1.86% of your loan amount annually. It's added to your mortgage payment until you reach 20% equity. Once you do, you can request PMI removal.
What else do I need to save for?
Beyond the down payment, budget for closing costs (2-5% of home price), inspection (~$400), appraisal ($500), and moving costs. You should also have 3-6 months of living expenses saved.
Should I save more for a higher down payment?
A higher down payment reduces your monthly payment and total interest. However, make sure you maintain emergency savings (3-6 months of expenses) and don't deplete retirement accounts just for a down payment.