Down Payment Guide — How Much Do You Really Need?
| Down Payment | On $300K Home | Monthly Payment | PMI? |
|---|---|---|---|
| 3% | $9,000 | $1,838 + $145 PMI | Yes |
| 5% | $15,000 | $1,801 + $119 PMI | Yes |
| 10% | $30,000 | $1,706 + $90 PMI | Yes |
| 20% | $60,000 | $1,517 | No |
20% down eliminates PMI (Private Mortgage Insurance), saving $100-200/month. But waiting years to save 20% means missing home price appreciation. Sometimes 10% down is the sweet spot.
How to Save for a Down Payment
Automate savings into a high-yield account. Cut one major expense. Use employer matching programs. Consider family gifts (document properly for lenders).