Down Payment Calculator
Find the down payment you need and how long it will take to save it.
Saving for a down payment
A bigger down payment means a smaller loan, a lower payment, and often a better rate. Twenty percent also avoids mortgage insurance on many loans, though smaller down payments are possible.
Example
For a 350,000 home with a 20% target you need 70,000. With 15,000 saved and 1,000 a month earning 4%, you reach it in about 4 years, and you would need a mortgage of about 280,000.
Remember closing costs, moving costs and a cash reserve, which are in addition to the down payment. If your target date is far away, check the savings account rate every so often, as it can change.
Frequently asked questions
Do I need 20% down?
No. Many loans allow much less, but you may pay mortgage insurance and a higher rate.
Where should I keep the savings?
In a safe, easily accessible account. This is money you will need on a fixed date, so avoid risky investments.
Last updated