Ad · 320×50 Anchor (Mobile)
MortgageMath.app
Home / 25% Down Payment

25% Down Payment Mortgage Calculator

A strong equity position from closing day. May qualify you for better rates and significantly reduces total interest paid.

= $100,000

Monthly Payment
$1,996
Loan Amount
$300,000
Total Interest
$418,527
Total Cost
$818,527

Payment Breakdown

Down Payment$100,000 (12.2%)
Principal$300,000 (36.7%)
Total Interest$418,527 (51.1%)
Down Payment
$100,000
on $400,000 home
Monthly P&I
$1,996
7% rate, 30yr
PMI Estimate
None
20%+ eliminates PMI
Total Interest
$418,527
over 30 years

Monthly Payment with 25% Down by Home Price

Home PriceDown PaymentLoan AmountMonthly P&ITotal Interest
$150,000$37,500$112,500$748$156,948
$200,000$50,000$150,000$998$209,263
$250,000$62,500$187,500$1,247$261,579
$300,000$75,000$225,000$1,497$313,895
$350,000$87,500$262,500$1,746$366,211
$400,000$100,000$300,000$1,996$418,527
$450,000$112,500$337,500$2,245$470,843
$500,000$125,000$375,000$2,495$523,158
$600,000$150,000$450,000$2,994$627,790
$700,000$175,000$525,000$3,493$732,422
$750,000$187,500$562,500$3,742$784,738
$800,000$200,000$600,000$3,992$837,053
$900,000$225,000$675,000$4,491$941,685
$1,000,000$250,000$750,000$4,990$1,046,317

$400,000 Home with 25% Down — By Rate

Rate15-Year30-YearInterest Saved (15yr)
5.5%$2,451$1,703$171,987
6%$2,532$1,799$191,832
6.5%$2,613$1,896$212,235
6.75%$2,655$1,946$222,635
7%$2,696$1,996$233,159
7.25%$2,739$2,047$243,804
7.5%$2,781$2,098$254,565
8%$2,867$2,201$276,414

25% vs 20% Down Payment Comparison

On a $400,000 home at 7% for 30 years:

25% Down20% DownDifference
Down Payment$100,000$80,000$20,000
Loan Amount$300,000$320,000$20,000
Monthly Payment$1,996$2,129$133
Total Interest$418,527$446,428$27,902

True Cost with 25% Down on $400,000

Cash Needed at Close
$112,000
down + ~3% closing costs
Total Interest (30yr)
$418,527
140% of loan
Total Paid (30yr)
$818,527
2.0× price
PMI Savings
$0
No PMI required

Guide to Buying with 25% Down

Putting 25% down on a home means you need $100,000 upfront on a $400,000 home. Here's what to consider:

  • No PMI required. With 25% down, you skip private mortgage insurance entirely, saving you $175/month compared to a typical PMI payment.
  • Better rate potential. Lenders view larger down payments as lower risk, potentially offering you better rates.
  • Your loan amount is $300,000. A smaller loan means less total interest over the life of the mortgage — $418,527 at 7% over 30 years.
  • Don't drain your savings. Keep 3-6 months of expenses in reserve after closing. The $100,000 down payment shouldn't leave you cash-strapped for repairs, moving costs, or emergencies.
  • Explore assistance programs. Many states and cities offer down payment grants or matched savings programs for first-time buyers — these can supplement your 25% down payment.
  • Factor in closing costs. Budget an additional 2-5% ($8,000$20,000) for closing costs on top of your $100,000 down payment.

Frequently Asked Questions — 25% Down Payment

Is 25% a good down payment?

Yes — 25% down eliminates PMI and gives you immediate equity. It's above the conventional threshold that most financial advisors recommend.

How much is 25% down on a $400,000 home?

25% of $400,000 is $100,000. Your loan amount would be $300,000, with a monthly payment of $1,996 at 7% for 30 years.

Do I need PMI with 25% down?

No — with 25% down, you've exceeded the 20% threshold and won't pay private mortgage insurance.

How does 25% down compare to 20% down?

With 25% down, your monthly payment is $133 lower than 20% down, and you save $27,902 in total interest. The trade-off is tying up more cash upfront.

What loan types accept 25% down?

All loan types accept this down payment level. Conventional loans are most common at 10%+. Compare loan types to find the best fit for your credit profile.

Should I save more or buy now with 25% down?

With 25% down, you're in strong shape. Buying now locks in current prices and rates. Just ensure you maintain 3-6 months of cash reserves after closing.

How long does it take to save 25% for a $400,000 home?

Saving $100,000 depends on your income and savings rate. At $1,000/month saved, it takes about 100 months (8.3 years). At $2,000/month, roughly 50 months.

Can I use gift money for my 25% down payment?

Yes — most loan types allow gift funds for down payments. Conventional loans may require you to contribute some of your own funds if putting less than 20% down. FHA and VA loans allow 100% of the down payment to come from gifts. You'll need a gift letter from the donor.

Other Down Payment Options