How to use
- Replace the example inputs with your loan and property figures.
- Select Calculate to update the estimate and any schedule.
- Change one assumption at a time, then compare the result with the earlier scenario.
How this calculation works
The selected percentage is multiplied by the purchase price to obtain the down payment. That contribution is subtracted from the price to obtain the loan amount. Entered transaction costs are added to the down payment for an initial cash requirement.
Down payment = price × down percentage; loan = price − down payment
Worked example
Illustrative inputs — not a quote or a local average.
- Home price
- $400,000.00
- Down payment
- 20 %
- Transaction costs
- $4,500.00
Down payment: $80,000.00. Loan amount: $320,000.00. Cash needed: $84,500.00.
Reading the result
Compare several contribution levels while keeping the price fixed. Each extra dollar down reduces the amount financed by a dollar, but that cash is no longer available for a move, repairs or reserves. Mortgage insurance and interest-rate pricing may also change; compare actual lender quotes.
Before acting on the estimate
The percentage is a planning input rather than a program minimum. Earnest money, lender credits and prepaid items require the more detailed closing-cost worksheet. Do not include those costs twice when combining estimates.
Questions, answered
Does a 20% down payment guarantee approval?
No. Approval also depends on the borrower, property and loan requirements.
Are closing costs part of the down payment?
No. They are separate amounts, although both affect the cash you need.