Down Payment Calculator 2026 – Home Buying Savings Goal
Calculate required down payment for home purchase, PMI costs, and monthly savings needed. Plan your home buying budget for 2026.
Down Payment Calculator 2026 – Home Buying Savings Goal
Introduction
The down payment is the biggest barrier to homeownership for most buyers. A 20% down payment eliminates PMI and improves loan terms, but that's $80,000 on a $400,000 home. The Down Payment Calculator helps you determine how much to save and creates a realistic timeline.
Down Payment Requirements by Loan Type
| Loan Type | Min Down Payment | PMI Required? |
|---|---|---|
| Conventional | 3-20% | Yes if \u003c20% |
| FHA | 3.5% | Yes (MIP) |
| VA | 0% | No |
| USDA | 0% | No |
Example: $350,000 home
- Conventional 20%: $70,000
- FHA 3.5%: $12,250
- VA: $0
PMI Costs
PMI (Private Mortgage Insurance) protects the lender if you default. Required for conventional loans \u003c20% down.
PMI Rate: 0.5-1.5% of loan amount annually
Example:
- $400k home, 10% down ($40k)
- Loan: $360,000
- PMI: $360k × 0.8% = $2,880/year ($240/month)
Removal: Once you reach 20% equity (via payments + appreciation)
Lifetime Cost: $10,000-$30,000+ if you never refinance
Savings Timeline
Formula: Months = Down Payment Goal / Monthly Savings
Example:
- Target: $60,000 (15% down on $400k)
- Monthly savings: $2,000
- Timeline: 30 months (2.5 years)
First-Time Buyer Programs
Down Payment Assistance (DPA):
- Grants: $5,000-$25,000 (no repayment)
- Forgivable loans: Forgiven after 5-10 years
- Deferred-payment loans: Repaid when you sell/refinance
Income Limits: Usually \u003c80-120% of area median income
Popular Programs:
- State housing finance agencies
- Local city/county programs
- Employer assistance
Closing Costs
Beyond Down Payment:
- Closing costs: 2-5% of purchase price
- Inspections/appraisal: $1,000-$2,000
- Moving costs: $2,000-$5,000
Total Cash Needed: Down payment + $10k-$25k closing/moving
Strategies to Save Faster
- Automate Savings: Direct deposit to separate account
- High-Yield Savings: 4-5% vs. 0.01% checking
- Side Hustle: $500/month side income = $6k/year
- Tax Refund: Bank entire refund
- Reduce Expenses: Cut $300/month = $3,600/year extra
FAQ
Q: Should I use my entire emergency fund for down payment? A: No. Keep 3-6 months expenses liquid after closing.
Q: FHA vs. Conventional with low down payment? A: FHA easier to qualify but MIP never drops off. Conventional PMI can be removed.
Q: Can I use 401(k) for down payment? A: First-time buyers can withdraw $10k penalty-free (but pay tax). Generally not recommended.
Q: Should I wait to save 20% or buy with less? A: Depends on market. If prices rising 10%/year, buying with 10% down might beat waiting 2 years to save 20%.
Related Calculators
- Mortgage Affordability: /calculator/101-mortgage-affordability-calculator-2026
- Mortgage Calculator: /calculator/04-mortgage-calculator
- Savings Goal: /calculator/110-savings-goal-calculator-2026
Conclusion
The down payment is a mountain, but it's climbable with a plan. Use the Down Payment Calculator to set a realistic goal, timeline, and monthly savings target. Consider low-down-payment options if waiting costs you appreciation, but understand the PMI trade-off.
Key Takeaways
- Start saving early to maximize compound interest growth
- Compare APY rates across accounts to ensure your money works harder
- Maintain an emergency fund covering 3–6 months of essential expenses
How to Use This Calculator
- Enter your financial details in the fields above
- Adjust parameters to match your specific situation
- Review the calculated results and projections
- Compare different scenarios to find the optimal strategy
Tips for Better Results
- Use realistic estimates based on current market conditions
- Update your calculations regularly as your situation changes
- Consider consulting a financial advisor for complex decisions
- Remember that calculator results are estimates, not guarantees