💰Down Payment Calculator
Calculate how much you need for a down payment, closing costs, and when you can afford to buy your home.
Related Calculators
Frequently Asked Questions
How much should I save for a down payment?
The ideal down payment is 20% of the home price to avoid PMI (private mortgage insurance). However, many buyers put down less: FHA loans require just 3.5%, and conventional loans can start at 3-5%. While lower down payments help you buy sooner, they result in higher monthly payments and PMI costs. Consider your budget, savings timeline, and monthly payment comfort level when deciding.
What are closing costs and how much are they?
Closing costs are fees paid when finalizing a home purchase, typically 2-5% of the home price. They include loan origination fees, appraisal fees, title insurance, attorney fees, property taxes, homeowner's insurance, and recording fees. For a $350,000 home, expect $7,000-17,500 in closing costs. Some costs are negotiable, and sellers sometimes contribute to closing costs.
Should I pay PMI or wait to save 20% down?
This depends on your market and goals. PMI typically costs 0.5-1% of the loan amount annually ($100-300/month on a $300K loan). If home prices are rising quickly, buying with PMI now may be better than waiting years to save 20%, as appreciation could outpace PMI costs. However, if you can save 20% in 1-2 years, waiting eliminates PMI and reduces your loan amount. Run the numbers for your specific situation.
Can I use gift money for my down payment?
Yes, most loan programs allow gift money from family members for down payments. The donor must provide a gift letter stating the money is a gift, not a loan, and doesn't need to be repaid. FHA allows 100% of the down payment to be gifted, while conventional loans typically require at least 5% to come from your own funds. Keep clear documentation of gift money transfers for your lender.
How long does it take to save for a down payment?
This depends on home prices, your target down payment percentage, and monthly savings. The median first-time buyer takes 5-7 years to save for a down payment. For a $350,000 home with 20% down ($70,000), saving $1,000/month takes 6 years, while $2,000/month takes 3 years. Consider strategies like reducing expenses, increasing income, using tax refunds, or exploring down payment assistance programs to speed up the process.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.