Meet Jake. He earns $75,000 per year and has been renting in Austin for five years. He's ready to buy but keeps asking himself the same question: how much do I actually need to save? A $350,000 home with a traditional 20% down payment means coming up with $70,000 in cash. That number feels overwhelming. Our Down Payment Calculator takes the guesswork out of home buying. Whether you're putting down 3%, 10%, or the full 20%, this tool shows you exactly what you'll owe at closing—and what your monthly payment looks like with a 30-year mortgage at 6.5% APR.
How to Use
Enter your target home price and select your down payment percentage. The calculator instantly displays your required cash amount and remaining loan balance. Toggle between different percentages to compare scenarios. For example, see the difference between 5% down ($17,500) and 20% down ($70,000) on a $350,000 purchase.
Pro Tips
Check if you qualify for state or local down payment assistance programs—many offer grants up to $15,000 for first-time buyers. Don't raid your 401k; you'll lose that 6% employer match and miss years of compound growth. Instead, open a high-yield savings account and automate transfers from each paycheck. Remember, you don't need 20% down to buy. FHA loans require just 3.5% down, and conventional loans can go as low as 3%. The calculator helps you find the sweet spot between upfront costs and monthly payments.
Common Mistakes to Avoid
First, many buyers forget closing costs. Beyond your down payment, expect to pay 2-5% of the home price in closing fees—that's $7,000 to $17,500 on a $350,000 home. Second, draining your emergency fund to hit 20% is risky. You still need 3-6 months of expenses saved after closing. Third, ignoring PMI costs. Putting down less than 20% triggers Private Mortgage Insurance, which adds $100-$300 to your monthly payment. Run multiple scenarios in the calculator to see the real cost comparison.
Frequently Asked Questions
How much do I need for a down payment on a $350,000 home?
It depends on your loan type. With 20% down, you need $70,000. FHA loans require 3.5% ($12,250), while some conventional loans accept 3% ($10,500). Use the calculator to compare how each option affects your monthly payment.
Is it better to put 20% down or save that money?
Putting 20% down eliminates PMI, saving you $150-$250 monthly on a $350,000 home. But if investing your cash earns more than your mortgage rate (6.5% APR), a smaller down payment might make financial sense. Run both scenarios in the calculator.
Can I use gift money for my down payment?
Yes, most lenders allow gift funds from family members for down payments. You'll need a gift letter documenting that the money doesn't need to be repaid. This can help you reach a higher down payment threshold and reduce your monthly costs.