3% Down Payment Mortgage Calculator
The minimum down payment for conventional loans. Requires PMI but gets you into a home with minimal cash.
= $12,000
Payment Breakdown
Monthly Payment with 3% Down by Home Price
| Home Price | Down Payment | Loan Amount | Monthly P&I | Total Interest |
|---|---|---|---|---|
| $150,000 | $4,500 | $145,500 | $968 | $202,985 |
| $200,000 | $6,000 | $194,000 | $1,291 | $270,647 |
| $250,000 | $7,500 | $242,500 | $1,613 | $338,309 |
| $300,000 | $9,000 | $291,000 | $1,936 | $405,971 |
| $350,000 | $10,500 | $339,500 | $2,259 | $473,633 |
| $400,000 | $12,000 | $388,000 | $2,581 | $541,295 |
| $450,000 | $13,500 | $436,500 | $2,904 | $608,956 |
| $500,000 | $15,000 | $485,000 | $3,227 | $676,618 |
| $600,000 | $18,000 | $582,000 | $3,872 | $811,942 |
| $700,000 | $21,000 | $679,000 | $4,517 | $947,265 |
| $750,000 | $22,500 | $727,500 | $4,840 | $1,014,927 |
| $800,000 | $24,000 | $776,000 | $5,163 | $1,082,589 |
| $900,000 | $27,000 | $873,000 | $5,808 | $1,217,913 |
| $1,000,000 | $30,000 | $970,000 | $6,453 | $1,353,236 |
$400,000 Home with 3% Down — By Rate
| Rate | 15-Year | 30-Year | Interest Saved (15yr) |
|---|---|---|---|
| 5.5% | $3,170 | $2,203 | $222,437 |
| 6% | $3,274 | $2,326 | $248,103 |
| 6.5% | $3,380 | $2,452 | $274,491 |
| 6.75% | $3,433 | $2,517 | $287,941 |
| 7% | $3,487 | $2,581 | $301,553 |
| 7.25% | $3,542 | $2,647 | $315,320 |
| 7.5% | $3,597 | $2,713 | $329,237 |
| 8% | $3,708 | $2,847 | $357,495 |
3% vs 20% Down Payment Comparison
On a $400,000 home at 7% for 30 years:
| 3% Down | 20% Down | Difference | |
|---|---|---|---|
| Down Payment | $12,000 | $80,000 | $68,000 |
| Loan Amount | $388,000 | $320,000 | $68,000 |
| Monthly Payment | $2,581 | $2,129 | $452 |
| Total Interest | $541,295 | $446,428 | $94,866 |
Note: With 3% down, PMI (~$226/mo) is required until you reach 20% equity. This adds to your effective monthly cost.
True Cost with 3% Down on $400,000
Guide to Buying with 3% Down
Putting 3% down on a home means you need $12,000 upfront on a $400,000 home. Here's what to consider:
- You'll pay PMI. With less than 20% down, private mortgage insurance adds roughly $226/month to your costs. This drops off once you reach 20% equity.
- Lower barrier to entry. Saving $12,000 is more achievable than the $80,000 needed for 20% down — you can buy sooner and start building equity.
- Your loan amount is $388,000. A larger loan means more total interest over the life of the mortgage — $541,295 at 7% over 30 years.
- Don't drain your savings. Keep 3-6 months of expenses in reserve after closing. The $12,000 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 3% down payment.
- Factor in closing costs. Budget an additional 2-5% ($8,000–$20,000) for closing costs on top of your $12,000 down payment.
Frequently Asked Questions — 3% Down Payment
Is 3% a good down payment?
3% is the minimum for many loan programs. It gets you into a home sooner, but you'll have PMI and a larger loan balance. It's a trade-off between buying now and waiting to save more.
How much is 3% down on a $400,000 home?
3% of $400,000 is $12,000. Your loan amount would be $388,000, with a monthly payment of $2,581 at 7% for 30 years.
Do I need PMI with 3% down?
Yes — PMI is required when putting less than 20% down. On a $388,000 loan, expect roughly $226/month in PMI. You can request PMI removal once your equity reaches 20%.
How does 3% down compare to 20% down?
With 3% down, your monthly payment is $452 higher than 20% down, and you'll pay $94,866 more in total interest. You also need to budget for PMI.
What loan types accept 3% down?
Conventional loans (3% min), FHA loans (3.5% min), VA loans (0%), and USDA loans (0%) all work at this level. Compare loan types to find the best fit for your credit profile.
Should I save more or buy now with 3% down?
If home prices are rising faster than you can save, buying now with a smaller down payment may make sense — you start building equity immediately. But weigh the added cost of PMI and higher payments.
How long does it take to save 3% for a $400,000 home?
Saving $12,000 depends on your income and savings rate. At $1,000/month saved, it takes about 12 months (1.0 years). At $2,000/month, roughly 6 months.
Can I use gift money for my 3% 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.