Calculator

Calculate How Much You Can Afford to Put Down

Wondering how much you should spend on the down payment of a new home? It's simple math: the bigger your down payment, the smaller your mortgage loan and the less interest you'll pay over time. Your down payment can affect your loan eligibility too. Typically, you'll need at least 3% for a down payment, but many loans require 5% or more. If you put down less than 20%, most lenders will ask you to pay Private Mortgage Insurance (PMI) until your loan-to-value ratio hits 80%. It's smart to keep a cash cushion for unexpected expenses when buying a home. Talk to your lender to find the right down payment for you.

You can calculate a down payment that makes sense with these key factors:

• The price of the home
• The loan term
• The length of time you plan to live in the home
• Your down payment
• The interest rate
• The mortgage insurance rate

1. Start by entering the home purchase price.
2. Enter the loan term and the length of time you plan to live in the home.
3. Enter one amount pay for a down payment along with the interest rate and mortgage insurance rate.
4. Enter details for a second down payment for comparison purposes.
5. Adjust these factors to learn how much of a down payment you can afford.