Purchase Details
HYSA / money market rate
Typically 2–5% of loan amount
Used for PMI drop timeline
Results
0% saved
Down Payment Required
$90,000
Loan: $360,000 · LTV: 80.0%
CONVENTIONAL · No PMI at 20%
Down Amount
$90,000
Monthly P&I
PMI / MIP
None
LTV Ratio
80.0%
Cash Needed
Goal Date
Down = Price × % · Loan = Price − Down · PMI ≈ 0.8%·Loan/12
Monthly Payment by Down % (P&I + PMI)

Loan Type Comparison

Based on your home price and savings — using your selected mortgage rate and term.

Metric Conventional 5% FHA 3.5% Conventional 20% VA 0%
Calculate on the Calculator tab first.

Bear / Base / Bull Home Price Scenarios

How do market conditions affect your down payment goal?

🙁 Bear Market −10%
— Base Case
😀 Bull Market +10%

Rate × Down Payment — Monthly P&I Matrix

Monthly principal & interest at different rate and down payment combinations. Green = affordable, red = high. Your selection is highlighted.

Rate \ Down % 5%10%15%20%25%

PMI Break-Even: Buy Now vs Wait for 20%

Is it better to buy now with PMI, or wait until you have 20% down?

Cost Analysis

PMI Paid if Buy Now
Extra Months Waiting
Interest on Extra Savings
Appreciation During Wait
Calculate to see recommendation.

🎯 Goal Seeker — Reverse Calculator

Pick your target purchase date and see exactly how much you need to save each month to be ready.

— Calculate first
Monthly Needed
Months to Goal
Total to Save
Interest Earned

Savings Acceleration

Compare your current savings pace to boosted scenarios.

Boost Amount: /mo
36-Month Savings Trajectory (Base · Boosted · Super Boosted)
Months Saved
Goal Date (Boosted)
Extra Interest
Total at Goal

📈 PMI Payoff Timeline

Start LTV
PMI Drops At
Total PMI Paid
Months w/ PMI
Extra $100/mo Saves
Break-Even LTV
80.0%
LTV Over Time (PMI drops at 80%)

24-Month Savings Breakdown

Month Base Balance Boosted Balance Goal

How to Use This Calculator

1

Set Your Purchase

Enter the home price and select your target down payment percentage on the Savings tab.

2

Choose Your Loan Type

Switch to the Loan tab to compare Conventional, FHA, VA, and USDA loan types with their real costs.

3

Plan Your Savings

Use the Smart Planner tab to set a target date, see how to accelerate savings, and track your PMI payoff timeline.

Formula & Methodology

Down Payment & Loan

Down = Price × (% / 100)  ·  Loan = Price − Down  ·  LTV = Loan / Price

Monthly Savings to Goal (Compound)

Balance(m+1) = Balance(m) × (1 + APY/12) + Monthly

Iterative simulation including compound interest on accumulated savings.

PMI & MIP Rules

Conventional PMI ≈ 0.8%/yr · FHA MIP = 0.55%/yr + 1.75% upfront · VA = 2.15% upfront · USDA = 0.35%/yr + 1% upfront

Key Terms

PMI
Private Mortgage Insurance — required on conventional loans when LTV > 80%. Auto-cancels at 78% LTV.
MIP
Mortgage Insurance Premium — FHA's version of PMI. Includes 1.75% upfront fee + 0.55%/yr ongoing (often lasts life of loan).
LTV
Loan-to-Value ratio. 80% LTV = 20% down. Lenders use this to determine PMI and loan approval.
VA Funding Fee
One-time fee (2.15% for first use) paid to the VA instead of monthly PMI. No ongoing mortgage insurance.
Closing Costs
Additional fees at purchase: appraisal, title insurance, origination, escrow. Budget 2–5% of loan amount.

Real-World Examples

Example 1

First-Time FHA Buyer

Home: $400,000 · FHA 3.5% down ($14,000) · Current savings: $10,000 · Monthly savings: $1,500 at 4.5% APY

Result: Ready in ~3 months. FHA MIP: ~$183/mo ongoing + $7,000 upfront. Total monthly payment ~$2,800 including MIP.

Example 2

Avoiding PMI Entirely

Home: $450,000 · Conventional 20% ($90,000) · Current savings: $40,000 · Monthly: $2,000 at 4.5% APY

Result: ~24 months to goal. No PMI saves ~$240/mo vs 5% down. Monthly payment ~$2,370 P&I at 6.75%.

How Much Should You Put Down on a House?

The 20% Rule and When to Break It

Putting 20% down avoids PMI and gives you instant equity, but it is not always the best strategy. If rising home prices outpace your savings, waiting for 20% may cost you more than PMI ever would. Use the PMI break-even analysis in the Scenario Analysis tab to run the numbers for your situation.

First-Time Buyer Loan Programs

FHA loans allow 3.5% down with credit scores as low as 580. VA loans offer 0% down for eligible veterans with no monthly PMI. USDA loans provide 0% down in eligible rural areas. Many states also offer down payment assistance grants — research your local HFA (Housing Finance Agency).

Opportunity Cost of a Large Down Payment

Cash used for a down payment cannot be invested elsewhere. If your mortgage rate is 6.75% and the stock market historically returns 10%, the marginal dollar invested in extra down payment earns a guaranteed 6.75% (by reducing interest) vs a potential 10% in equities. The right answer depends on your risk tolerance and time horizon.

Ready for the Next Step?

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