When you purchase a new home, you have to pay a down payment, which is a percentage of the purchase price that is not included in your home loan.
How much should your down payment be to buy a house? There are several aspects to consider. Your down payment has a direct relationship to your total loan amount and the amount of interest you’ll pay. If you put down less than 20% of the purchase price, your lender may require you to pay private mortgage insurance (PMI) to protect them in the event that you default on your loan. However, it may be more beneficial for you to keep extra money in your account in case of an emergency, rather than putting more money down to avoid PMI.
We’ve created a Home Loan Mortgage Down Payment Calculator that shows you the effect of your down payment on your mortgage. You can compare up to three different down payment amounts to calculate the impact of your monthly mortgage payment, your monthly mortgage insurance payment, your total loan amount and the total interest you’ll pay over the life of the loan.
At Mission Fed, we’re committed to helping you achieve financial success through great financial products and financial education. This down payment calculator is one of several Home Loan Calculators that we created to help you determine your home-purchasing budget. Check out these other calculators, Mortgage Payment Calculator and How Much Can I Afford? Calculator to get an even better idea of your purchasing power. We also have educational resources to help you on the journey to becoming a homeowner, such as an infographic guide to buying a home and First-Time Homebuyer Seminars, which we will announce on our website and through our social media channels, like Facebook and Twitter.
Rates and Terms will vary based on collateral and credit. Programs, rates, terms, conditions and services are subject to change without notice. All accounts and loans are subject to approval.
Interactive calculators are made available as self-help tools, and we cannot and do not guarantee their accuracy or applicability to your circumstances. All examples are hypothetical and are for illustrative purposes only. Calculators are not intended to provide investment advice, and we encourage you to seek personalized advice from qualified professionals regarding all your personal financial issues.