Down Payment Calculator 2026
Compare 3%, 5%, 10%, 15%, and 20% down payment scenarios on any home price. Real 2026 PMI math, current 6.46% mortgage rates, and the actual monthly payment difference at every level.
Last updated April 2026 · Sources: Freddie Mac PMMS, NAR 2025 Profile of Home Buyers, MGIC PMI rate cards, HUD Mortgagee Letter 2025-23
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Side-by-side scenarios
What people actually put down (NAR 2025)
The 20% down payment is a myth that won't die. NAR's most recent Profile of Home Buyers and Sellers shows the median across all buyers is 19%, but that average hides a huge split: first-time buyers put down 10%, repeat buyers put down 23%. The repeat buyer number is the highest since 2003 and reflects baby boomers cashing out home equity to upsize or right-size in retirement.
| Buyer type | Median down % | $ on $402,700 |
|---|---|---|
| First-time buyer | 10% | $40,270 |
| Repeat buyer | 23% | $92,621 |
| Age 26-34 | 10% | $40,270 |
| Age 35-44 | 14% | $56,378 |
| Age 60-69 | 28% | $112,756 |
| All buyers (median) | 19% | $76,513 |
Source: NAR 2025 Profile of Home Buyers and Sellers, Generational Trends Report
Frequently Asked Questions
How much down payment do I actually need to buy a house?
You don't need 20%. NAR's 2025 Profile of Home Buyers shows the median first-time buyer puts down just 10%, and roughly a third of first-timers use FHA loans (3.5% down minimum) or conventional 97 programs like Fannie Mae HomeReady (3% down). The 20% number sticks around because it's the threshold where private mortgage insurance disappears, not because lenders require it.
What's the difference between FHA and conventional down payments?
FHA accepts 3.5% down with a 580+ credit score, but you pay 1.75% upfront mortgage insurance plus 0.55% annually for the life of the loan if you put less than 10% down. Conventional loans start at 3% down for qualified first-time buyers, and the PMI drops off automatically at 78% LTV under the Homeowners Protection Act. FHA tends to win on credit flexibility, conventional wins on long-term cost once you build equity.
Should I put more than 20% down?
Only if your emergency fund is fully funded and you have no high-interest debt. Going from 20% to 30% down on a $400K home frees up about $300/month in payments but ties up $40,000 in illiquid equity. If you can earn more than your mortgage rate (currently 6.46%) on that cash through index funds or paying off credit cards at 20.97% APR, the math usually favors the smaller down payment.
How does PMI actually work in 2026?
Private mortgage insurance protects the lender if you default. For conventional loans, rates run roughly 0.19% to 1.86% annually depending on credit score and LTV. On a $380,000 loan at 95% LTV with average credit, expect around $250/month in PMI. The Homeowners Protection Act of 1998 requires lenders to drop PMI automatically at 78% LTV based on the original purchase price, and you can request removal at 80%.
Can I use gift money for a down payment?
Yes, and 25% of buyers do according to NAR. Conventional loans allow 100% gift funds on primary residences (with at least 5% down). FHA permits the entire down payment to come from a gift. You'll need a signed gift letter from the donor stating the funds aren't a loan, plus bank statements showing the transfer trail. Lenders verify this carefully because undisclosed loans inflate your debt ratios.
What does PMI add to my monthly payment on a low down payment loan?
On a $400,000 home with 5% down ($380,000 loan), conventional PMI at 95% LTV typically runs 0.65% to 0.78% annually for average credit. That's roughly $206-$247 per month. Drop to 10% down and PMI falls to about 0.52% (around $158/month on a $360,000 loan). At 15% down, PMI is closer to 0.32%, and at 20% it's zero.
How long does it take to save a 10% down payment?
On a $400,000 home, 10% is $40,000. If you can save $1,000 per month, that's 40 months. Park the money in a high-yield savings account (Varo currently pays 5.00% APY) or short-term Treasuries since you'll need it within five years. The Atomic Treasury account and similar products outpace the national savings average of 0.39% APY by a wide margin.
Are down payment assistance programs real and worth using?
They're very real. Almost every state has one, and many cities run their own. They come as grants (don't pay back), forgivable loans (forgiven after 5-10 years of occupancy), or deferred second mortgages. NAR found that 49% of buyers struggling with down payments had never checked. Search "[your state] housing finance agency" or use HUD's state assistance directory as a starting point.
Does putting more down get me a better interest rate?
Yes, but the gains shrink past 20%. Lenders typically offer the best rates at 25%+ down because the lower LTV reduces their risk. The bigger rate breaks happen at the 80%, 75%, and 60% LTV thresholds. Going from 5% down to 20% on the same home might save you 0.25% to 0.50% on the rate, which compounds to $20,000-$40,000 over 30 years on a typical loan.
Is it ever smart to buy with 0% down?
For VA-eligible veterans, almost always — the VA loan has no PMI and competitive rates. USDA loans also offer 0% down in eligible rural areas. Outside those programs, zero-down options usually come with higher rates and are essentially borrowing the down payment, which puts you immediately underwater if home values dip. The 2008 crisis was largely a story about zero-down loans on overpriced homes.
How does my down payment affect closing costs?
A larger down payment doesn't directly reduce closing costs, but it does shrink your loan amount, which lowers the percentage-based fees: origination (typically 0.5%-1% of the loan), title insurance, and prepaid interest. On a $400,000 home, going from 5% to 20% down cuts these fees by roughly $400-$600. Closing costs themselves run 2%-5% of the purchase price regardless of down payment.
What if I have the down payment but not enough for closing costs?
Three options. First, ask the seller for concessions — conventional loans allow 3% in seller credits with under 10% down, up to 9% with 25%+ down. Second, take lender credits in exchange for a slightly higher rate (typically 0.125%-0.25% extra for 1% in credits). Third, roll closing costs into a refinance later. Don't drain your emergency fund to cover closing — that's the fastest path to foreclosure when something breaks in year one.
Sources: Freddie Mac Primary Mortgage Market Survey (April 2 2026), NAR 2025 Profile of Home Buyers and Sellers, MGIC and Radian PMI rate cards, HUD Mortgagee Letter 2025-23, IRS Rev. Proc. 2025-32.
Disclaimer: This calculator provides estimates for educational purposes. Actual loan costs depend on credit score, debt-to-income ratio, property location, and lender pricing. Consult a licensed mortgage professional before making borrowing decisions.