Question 1

How much down payment do I need for a house?

Accepted Answer

Conventional loans require as little as 3% down, FHA loans 3.5%, VA and USDA loans 0%. However, putting less than 20% down on a conventional loan means you pay private mortgage insurance (PMI), which typically adds 0.3-1.5% of the loan per year until you reach 20% equity.

Question 2

Is 20% down always the best choice?

Accepted Answer

Not necessarily. While 20% avoids PMI and lowers your payment, tying up that cash has an opportunity cost. With today's mortgage rates, putting 10-15% down and investing the difference can sometimes beat the PMI cost. Run the numbers with this calculator and compare total cost vs. invested cash.

Question 3

How is PMI calculated?

Accepted Answer

PMI is usually 0.3% to 1.5% of the original loan amount per year, paid monthly. The exact rate depends on your credit score, loan-to-value ratio, and loan type. A borrower with excellent credit might pay 0.3%, while a lower-credit borrower could pay 1.5% or more.

Question 4

Does this calculator store my information?

Accepted Answer

No. All calculations run entirely in your browser. Nothing is uploaded, saved, or shared with any server.