How it works
Your down payment is a percentage of the purchase price. The rest is financed. Closing costs are paid separately, often 2–5% of the price.
Formula
Down payment = Price × Down % · Loan = Price − Down payment
Example
20% down on a $400,000 home is $80,000, leaving a $320,000 loan. With 3% closing costs you'd need about $92,000 in cash.
Assumptions & limitations
- Results are rounded for display.
Frequently asked questions
Do I need 20% down?
No. Many loans allow 3–5% down (FHA 3.5%), but under 20% usually adds mortgage insurance.