Down Payment Calculator
This calculator helps you estimate the down payment required for a home purchase, along with associated closing costs and the resulting mortgage details. You can calculate based on your upfront cash, target home price, or a combination of both.
Results:
| Estimated Home Price | $0.00 |
|---|---|
| Down Payment Amount | $0.00 |
| Closing Costs Amount | $0.00 |
| Loan Amount | $0.00 |
| Monthly Payment | $0.00 |
| Total Interest | $0.00 |
| Total Cost of Loan | $0.00 |
Results:
| Down Payment Amount | $0.00 |
|---|---|
| Closing Costs Amount | $0.00 |
| Total Upfront Cash Needed | $0.00 |
| Loan Amount | $0.00 |
| Monthly Payment | $0.00 |
| Total Interest | $0.00 |
| Total Cost of Loan | $0.00 |
Results:
| Down Payment Amount | $0.00 |
|---|---|
| Closing Costs Amount | $0.00 |
| Remaining Upfront Cash | $0.00 |
| Loan Amount | $0.00 |
| Monthly Payment | $0.00 |
| Total Interest | $0.00 |
| Total Cost of Loan | $0.00 |
About Down Payment Calculator
A down payment is an initial upfront payment made when purchasing a home. It represents a percentage of the total home price and is typically paid at the time of closing. The size of your down payment can significantly impact your mortgage loan amount, monthly payments, and overall interest paid over the life of the loan.
Why is a Down Payment Important?
A larger down payment generally offers several benefits:
- Lower Monthly Payments: A smaller loan amount means lower principal and interest payments each month.
- Less Interest Paid: You borrow less money, so you pay less interest over the life of the loan.
- Avoid PMI: If your down payment is 20% or more, you can often avoid Private Mortgage Insurance (PMI), which is an additional monthly cost.
- Better Interest Rates: Lenders often offer more favorable interest rates to borrowers with higher down payments, as it indicates less risk.
- Increased Equity: You start with more equity in your home from day one.
Understanding Closing Costs
In addition to the down payment, homebuyers typically pay closing costs, which are fees associated with the purchase of a home. These can include loan origination fees, appraisal fees, title insurance, attorney fees, and more. Closing costs usually range from 2% to 5% of the loan amount and are paid at closing.
How This Calculator Works
This calculator provides three ways to determine your down payment and related mortgage details:
- Use Upfront Cash Available: If you know how much cash you have saved, this option helps you determine what home price you can afford and the resulting loan details based on your desired down payment percentage and estimated closing costs.
- Use Home Price: If you have a target home price in mind, this option calculates the required down payment amount, total upfront cash needed (including closing costs), and your estimated monthly mortgage payment.
- Use Home Price & Upfront Cash: This option allows you to input both your target home price and the cash you have available. It then calculates your down payment percentage, remaining cash after down payment and closing costs, and the mortgage details.
For more detailed mortgage calculations, visit our Mortgage Calculator.