What the down payment calculator tells you
A down payment is the share of a home’s price you pay in cash up front; your mortgage covers the rest. It is the single biggest number between you and the closing table, and it drives two others lenders watch: your loan-to-value ratio and whether you owe private mortgage insurance (PMI).
This calculator converts a price and a down-payment percentage into the real cash you need — down payment plus closing costs — and shows how 3.5%, 10%, or 20% down changes your loan size and monthly payment.
How it works
- Down payment = home price × down-payment %. The loan is the remainder.
- Loan-to-value (LTV) = loan ÷ price. Above 80% LTV (under 20% down), most conventional lenders add PMI, estimated here at ~0.7% of the loan per year.
- Cash to close = down payment + closing costs (a percentage of price; Florida buyers typically run 2–4%).
- The scenario table re-runs everything from 3.5% to 25% down so you can weigh cash up front against the monthly payment.
Frequently asked questions
How much down payment do I need to buy a house?
It depends on the loan. Conventional loans can go as low as 3% down, FHA requires 3.5%, and VA loans allow 0% for eligible veterans. Putting 20% down lets you avoid PMI. On a $750,000 Miami home, 20% is $150,000 and 3.5% is $26,250.
What is PMI and when do I pay it?
Private mortgage insurance protects the lender when you put down less than 20%. It usually costs 0.5%–1.2% of the loan per year, added to your monthly payment, and can typically be removed once you reach 20% equity.
Do I need 20% down to buy in Miami?
No. Plenty of buyers close with 3%–5% down plus PMI, or use FHA/VA programs. Twenty percent simply lowers your loan, drops PMI, and strengthens an offer — which matters on competitive off-market deals.
What are closing costs on top of the down payment?
Closing costs are separate from the down payment and usually run 2%–4% of the price in Florida — title insurance, lender fees, doc stamps, recording, and prepaid taxes/insurance. Use the Florida Closing Costs calculator for a line-by-line estimate.
Is a bigger down payment always better?
A larger down payment lowers your loan, monthly payment, and total interest, and removes PMI — but it also ties up cash you may want for reserves, renovations, or your next property. The scenario table shows the trade-off at each level.
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