First-Time Home Buyer Calculator
Compare different down payment strategies side-by-side. See how 3.5%, 5%, 10%, and 20% down affect your monthly payment, PMI costs, and total interest over the life of your loan.
How to Use This Calculator
This calculator helps first-time buyers understand how different down payment amounts affect their mortgage. We've preloaded 4 scenarios for a $350,000 home with current market rates.
Pre-Loaded Scenarios:
- 3.5% Down (FHA): Minimum down payment for FHA loans, includes PMI
- 5% Down (Conventional): Low down payment option with PMI
- 10% Down: Mid-range option, still includes PMI
- 20% Down: No PMI required, lowest total cost
What You'll See
- • Monthly payment breakdown (P&I, PMI, taxes, insurance)
- • Total interest paid over 30 years
- • When PMI drops off (at 20% equity)
- • Full amortization schedules
- • Side-by-side comparison charts
Customize Your Scenarios
- • Adjust purchase price to match your market
- • Update interest rates to current offers
- • Change property tax and insurance estimates
- • Add extra payments to pay off faster
- • Save scenarios for later comparison
Understanding PMI (Private Mortgage Insurance)
If you put down less than 20%, you'll pay PMI until you reach 20% equity. PMI protects the lender and typically costs 0.5-1% of the loan amount annually.
Good news: PMI automatically drops off when you reach 20% equity through principal payments or home appreciation. This calculator shows exactly when that happens for each scenario.
Which Down Payment is Right for You?
3.5% Down (FHA) - Best if:
You're tight on cash for closing and want to preserve savings. FHA loans are easier to qualify for with lower credit scores.
5-10% Down - Best if:
You want to balance upfront costs with monthly payments. Good middle ground between saving cash and reducing PMI.
20% Down - Best if:
You have the cash saved and want the lowest monthly payment with no PMI. Saves the most money long-term and gives you instant equity.
Enter Your Details
Provide your information to generate personalized down payment scenarios
What happens next: We'll generate 4 scenarios comparing 3.5%, 5%, 10%, and 20% down payments using your information. You can still edit any scenario individually after they're created.
Need More Flexibility?
The Mortgage Modeler gives you complete control to build any scenario from scratch. Model ARMs, refinances, extra payments, and compare unlimited scenarios.
Open Mortgage Modeler