What this calculator shows you
- Goal Setting
- Set your target down payment amount
- Savings Timeline
- See how long it will take to save
- Monthly Savings Needed
- Calculate required monthly savings
- PMI Analysis
- Understand the cost of lower down payments
Down Payment Options
20% is ideal to avoid PMI, but options exist for less: Conventional loans (3-5%), FHA (3.5%), VA (0% for veterans), USDA (0% for rural areas). Each has tradeoffs in fees and requirements.
Saving Strategies
Automate savings to a dedicated account, cut major expenses temporarily, use windfalls (bonuses, tax refunds), consider a side hustle, and look into down payment assistance programs.
Questions people ask
Is 20% down really necessary?
No, but it avoids PMI and gives you instant equity. With less down, you pay PMI (0.5-1% of loan annually) until you reach 20% equity. Calculate if saving longer for 20% is worth it.
Should I use retirement funds for a down payment?
Generally no. Penalties, taxes, and lost growth make this expensive. However, first-time buyers can withdraw up to $10K from IRAs penalty-free. Consult a financial advisor.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.