20 Percent Down Calculator
Quick answer
At ~20% down on many conventional loans, PMI often drops off the monthly stack—verify with your loan program. Below that, PMI is an extra line until equity or refi removes it.
For a related estimate, see Down Payment Calculator.
Explore further: House Down Payment Calculator · Biweekly Mortgage Calculator
Why 20% matters (often)
Lower LTV reduces lender credit risk; PMI compensates the lender when LTV is above typical conventional cutoffs—crossing the threshold can remove that monthly fee.
Explore further: Closing Cost Calculator · Debt To Income Calculator
Primary angle: PMI breakpoint—on many conventional loans, 20% down removes monthly PMI from the picture. This page is for running “almost there” vs “over the line” scenarios: sometimes a slightly smaller house or extra savings clears PMI and changes the monthly for years.
How to use this calculator
- Model 18% vs 20% vs 22%: See whether a small increase in down payment clears PMI or only reduces balance slightly.
- Compare monthly with PMI: PMI can be material—fold it into the payment you compare to renting or to a smaller home.
- Plan gifts or grants: If gift funds push you over the threshold, document per lender rules.
Real-world examples
- Example: $515k home — 18% vs 20% down: 18% → ~$422.3k loan; 20% → ~$412k loan—smaller loan plus PMI removal on many programs can swing the monthly hundreds (illustrative; PMI rules vary).
- Sensitivity check: Nudge the rate by about +0.5% and the principal by about −5%. If the payment, break-even, or target amount moves enough to change your decision, you are still on a steep part of the curve where small inputs matter.
Explore further: Home Affordability With Taxes
What this means
If PMI is the line item you are trying to kill, small moves around the threshold matter more than small moves in rate—confirm PMI rules for your exact program.
FAQ
Is 20% universal?
No—FHA and VA work differently; some conventional loans allow less with PMI. Always confirm with your loan officer.
Is this a loan commitment?
No. Outputs are educational estimates. Final payments, APR, and fees come from your lender’s disclosures.
Why does my amortization schedule differ slightly?
Rounding, day-count conventions, and first-payment timing shift pennies. Use the schedule for directionally correct totals.