How Down Payment Size Changes a Mortgage

A larger down payment means a smaller loan, lower monthly principal and interest, and often no PMI on many conventional loans at 20% down. A smaller down payment keeps more cash in your pocket at closing but increases borrowing cost and may add PMI.

Cash at closing vs monthly cost

Every dollar in the down payment is a dollar not available for moving costs, repairs, furniture, or reserves. The affordability calculator helps you see how down payment size changes the home price you can model.

PMI and LTV

Below 80% LTV (20% down on the purchase price used for the loan), many conventional borrowers avoid monthly PMI. Above that threshold, estimate PMI with the PMI calculator and read LTV explained.

Programs with low down payments

FHA, VA, and USDA loans allow smaller down payments with their own fees or insurance structures. They are not the same as conventional PMI — see PMI vs mortgage insurance.