Home Back

Calculate Mortgage Down Payment

Down Payment Formula:

\[ \text{Down Payment} = \text{Home Price} \times \left(\frac{\text{Percentage}}{100}\right) \]

$
%

Unit Converter ▲

Unit Converter ▼

From: To:

1. What is a Down Payment?

A down payment is the initial upfront portion of the total amount due when purchasing a home with a mortgage. It represents your equity in the home from day one and reduces the amount you need to borrow.

2. How Down Payment Calculation Works

The calculator uses the simple formula:

\[ \text{Down Payment} = \text{Home Price} \times \left(\frac{\text{Percentage}}{100}\right) \]

Where:

Example: For a $300,000 home with 20% down payment: $300,000 × 0.20 = $60,000 down payment.

3. Importance of Down Payment

Details: A larger down payment reduces your loan amount, may eliminate private mortgage insurance (PMI), and can result in better interest rates and lower monthly payments.

4. Using the Calculator

Tips: Enter the home price in dollars (without commas) and the down payment percentage (e.g., 20 for 20%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical down payment percentage?
A: Conventional loans often require 20%, but FHA loans may require as little as 3.5%. Some conventional loans accept 3-5% down.

Q2: Does a larger down payment always make sense?
A: Not always. Consider your overall financial picture, including emergency savings, retirement accounts, and other debts.

Q3: Are there programs for low down payments?
A: Yes, programs like FHA loans, VA loans (for veterans), and first-time homebuyer programs often have lower down payment requirements.

Q4: How does down payment affect mortgage insurance?
A: With conventional loans, less than 20% down typically requires PMI. FHA loans have mortgage insurance regardless of down payment size.

Q5: Can gift funds be used for down payment?
A: Yes, many loan programs allow gift funds from family members, though documentation is required.

Mortgage Down Payment Calculator© - All Rights Reserved 2025