How to use it
- Enter Home price.
- Enter Down payment %.
The formula
Down payment = price × percent.
Worked example
20% down on a $300,000 home is $60,000, leaving a $240,000 loan.
Frequently asked questions
Why aim for 20%?
It usually removes private mortgage insurance.
Can I put less down?
Yes, but expect insurance and a higher payment.
Tips
- Compare the total interest, not just the monthly payment.
- A larger down payment lowers both the loan and any insurance.
- Even small extra principal payments cut years off the term.
Key terms
- Principal
- The amount borrowed, before interest.
- Amortization
- Spreading repayment into equal periodic payments.
- Escrow
- Funds held for taxes and insurance.