How much of your savings should you use to make a down payment on a house?
Many homebuyers are surprised to find out that the minimum down payment most lenders require is 3% or 5% of the purchase price of a house. At that minimum down payment level, and for all down payments of less than 20% of the purchase price, lenders typically require mortgage insurance.
As a homebuyer, you have a finite amount to work with. How do you decide how much of your savings to spend and how much to reserve? (If you have an infinite bank account, congrats! You probably don’t need a down payment calculator!)
Our calculator helps you explore your down payment options. We’ll show you what different down payment levels might mean for your monthly mortgage payment and your savings account. And unlike other calculators out there, we include mortgage insurance in our calculations, so you can get a more realistic comparison of your options.
We're not talking about a crisp 20 dollar bill in a birthday card from Grandma.
That’s one of those questions more easily asked than answered, and one that depends on your target home price.
Don’t wait until you feel ready to be a homeowner to start saving for a down payment. Save now and be ready to pounce on a home when the time is right!
