5% Down Payment Mortgage Calculator
A popular low down payment option for first-time buyers. Requires PMI until you reach 20% equity.
= $20,000
Payment Breakdown
Monthly Payment with 5% Down by Home Price
| Home Price | Down Payment | Loan Amount | Monthly P&I | Total Interest |
|---|---|---|---|---|
| $150,000 | $7,500 | $142,500 | $948 | $198,800 |
| $200,000 | $10,000 | $190,000 | $1,264 | $265,067 |
| $250,000 | $12,500 | $237,500 | $1,580 | $331,334 |
| $300,000 | $15,000 | $285,000 | $1,896 | $397,600 |
| $350,000 | $17,500 | $332,500 | $2,212 | $463,867 |
| $400,000 | $20,000 | $380,000 | $2,528 | $530,134 |
| $450,000 | $22,500 | $427,500 | $2,844 | $596,401 |
| $500,000 | $25,000 | $475,000 | $3,160 | $662,667 |
| $600,000 | $30,000 | $570,000 | $3,792 | $795,201 |
| $700,000 | $35,000 | $665,000 | $4,424 | $927,734 |
| $750,000 | $37,500 | $712,500 | $4,740 | $994,001 |
| $800,000 | $40,000 | $760,000 | $5,056 | $1,060,268 |
| $900,000 | $45,000 | $855,000 | $5,688 | $1,192,801 |
| $1,000,000 | $50,000 | $950,000 | $6,320 | $1,325,335 |
$400,000 Home with 5% Down — By Rate
| Rate | 15-Year | 30-Year | Interest Saved (15yr) |
|---|---|---|---|
| 5.5% | $3,105 | $2,158 | $217,850 |
| 6% | $3,207 | $2,278 | $242,987 |
| 6.5% | $3,310 | $2,402 | $268,832 |
| 6.75% | $3,363 | $2,465 | $282,004 |
| 7% | $3,416 | $2,528 | $295,335 |
| 7.25% | $3,469 | $2,592 | $308,819 |
| 7.5% | $3,523 | $2,657 | $322,449 |
| 8% | $3,631 | $2,788 | $350,124 |
5% vs 20% Down Payment Comparison
On a $400,000 home at 7% for 30 years:
| 5% Down | 20% Down | Difference | |
|---|---|---|---|
| Down Payment | $20,000 | $80,000 | $60,000 |
| Loan Amount | $380,000 | $320,000 | $60,000 |
| Monthly Payment | $2,528 | $2,129 | $399 |
| Total Interest | $530,134 | $446,428 | $83,705 |
Note: With 5% down, PMI (~$222/mo) is required until you reach 20% equity. This adds to your effective monthly cost.
True Cost with 5% Down on $400,000
Guide to Buying with 5% Down
Putting 5% down on a home means you need $20,000 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 $222/month to your costs. This drops off once you reach 20% equity.
- Lower barrier to entry. Saving $20,000 is more achievable than the $80,000 needed for 20% down — you can buy sooner and start building equity.
- Your loan amount is $380,000. A larger loan means more total interest over the life of the mortgage — $530,134 at 7% over 30 years.
- Don't drain your savings. Keep 3-6 months of expenses in reserve after closing. The $20,000 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 5% down payment.
- Factor in closing costs. Budget an additional 2-5% ($8,000–$20,000) for closing costs on top of your $20,000 down payment.
Frequently Asked Questions — 5% Down Payment
Is 5% a good down payment?
5% 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 5% down on a $400,000 home?
5% of $400,000 is $20,000. Your loan amount would be $380,000, with a monthly payment of $2,528 at 7% for 30 years.
Do I need PMI with 5% down?
Yes — PMI is required when putting less than 20% down. On a $380,000 loan, expect roughly $222/month in PMI. You can request PMI removal once your equity reaches 20%.
How does 5% down compare to 20% down?
With 5% down, your monthly payment is $399 higher than 20% down, and you'll pay $83,705 more in total interest. You also need to budget for PMI.
What loan types accept 5% down?
All major loan types accept 5% down: conventional, FHA, VA, and USDA. Compare loan types to find the best fit for your credit profile.
Should I save more or buy now with 5% 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 5% for a $400,000 home?
Saving $20,000 depends on your income and savings rate. At $1,000/month saved, it takes about 20 months (1.7 years). At $2,000/month, roughly 10 months.
Can I use gift money for my 5% 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.