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Down Payment Calculator

Calculate how much to save for a down payment and timeline

Down Payment Goal

$

Price of the home you want to buy

%

20% avoids PMI, 3-5% minimum for conventional

$

Amount already saved for down payment

$

How much you can save each month

%

Expected return on savings (HYSA: 4-5%)

%

Expected annual home price increase

When you want to buy

Savings Plan

Enter your details and click Calculate

Plan your down payment savings

Down Payment Guide

How Much Down Payment Do You Need?

  • 3%: Minimum for conventional loans (Fannie Mae, Freddie Mac)
  • 3.5%: Minimum for FHA loans
  • 0%: VA loans (veterans) and USDA loans (rural areas)
  • 20%: Avoids PMI, better rates, stronger offers

Why 20% is Often Recommended

  • No Private Mortgage Insurance (PMI)
  • Lower monthly payments
  • Better interest rates
  • More equity protection against price drops
  • Stronger offer in competitive markets

Where to Save for Down Payment

  • High-Yield Savings: 4-5% APY, FDIC insured, liquid
  • Money Market: Similar to HYSA with check-writing
  • CDs: Higher rates for locked terms
  • I-Bonds: Inflation-protected, good for 1+ year timeline

Additional Costs to Budget

  • Closing Costs: 2-5% of purchase price
  • Moving Expenses: Varies widely
  • Emergency Fund: 3-6 months expenses
  • Immediate Repairs: Budget 1-3% of home value

Down Payment Assistance Programs

Many states and localities offer down payment assistance for first-time buyers, including grants, forgivable loans, and matched savings programs. Check with your state housing finance agency.

Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.

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