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# Down Payment Calculator

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You can use the closing cost estimator to find out the closing cost

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years
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Calculated Results
Home Price347,826.09
Down Payment69,565.22
Closing Cost10,434.78
Loan Amount278,260.87
Monthly Payment1,409.91
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#### How Much is a Down Payment on a House?

Down payment on a house is the amount of cash you paid up front for purchasing the house. The remaining of the purchase will be paid through a mortgage loan. Down payment is normally calculated as the percentage of the home price. For example, 20% down payment on a house with purchase price of $500,000 will be$100,000.

Your down payment has a significant impact on the total cost of your home. For instance, your interest rate on the home is calculated, in large part, based on the amount of your down payment. The larger your down payment on a house, the lower your interest rate will be, and the less you'll wind up paying for your home.

Conventional wisdom usually says that you need 20% as a down payment to get the deal done. That's not so, as home buyers can buy a home with 3.5% down a U.S. Federal Housing Administration (FHA) loan on a 30-year fixed-rate home mortgage. However, making a down payment at least 20% will have a few benifits that will save you money significantly:

• Low Interest Rate:A 20% down payment along with a good credit score will make the banks to put you into low risk borrower and thus are willing to give you a lower interest rate for you mortgage.
• No PMI:You will not need to purchase premium for mortgage insurance if you down payment is 20% or more. The PMI is significant amount of money that will add to your monthly mortgage payment.
• Less Interest Payment:A big down payment will reduce your mortgage amount that will save you a large amount of money. You can try to use our calculate to find out how much you can save on interest if you increase your down payment.