Down payment
The cash you pay up front toward a home purchase. A larger down payment lowers your loan, your payment, and — at 20% or more — removes the need for PMI.
What does down payment mean?
Your down payment is instant equity and the single biggest lever on your loan size and payment. Crossing the 20% mark matters most: it removes private mortgage insurance on a conventional loan and often earns a better rate. Smaller down payments are possible — 3.5% on FHA, zero on VA and USDA — but they raise the balance you finance and usually the insurance you pay.
Frequently asked
How much down payment do I need to buy a house?
The minimum is 3% on a conventional loan and 3.5% on FHA, while eligible VA and USDA buyers can put nothing down. Reaching 20% removes private mortgage insurance and usually earns a better rate.
Is it better to put more money down?
A bigger down payment lowers your loan, your monthly payment and — at 20% — your PMI, and can improve your rate. But keep an emergency cushion; draining every dollar into the down payment can leave you stretched after closing.
Put it to use
All glossary terms Down Payment Calculator
Turn a down-payment percentage into dollars and see whether you clear the 20% PMI threshold.
Mortgage Calculator with PMI
Include private mortgage insurance in your payment and find out exactly when PMI drops off.
Home Equity Loan Calculator
Calculate the fixed monthly payment and total interest on a lump-sum home-equity loan.