The down payment is the cash you put in up front, and it changes everything that follows: your loan size, your monthly payment, and whether you pay an extra insurance charge every month. There is a “rule,” but the right amount is really a balance.
TL;DR — Enter the home price and your down payment in the down payment calculator to see the loan amount and whether you clear the 20% mark.
Why 20% is the magic number
Put down at least 20% and most lenders waive private mortgage insurance (PMI) — an extra monthly cost that protects them if you default. Below 20%, PMI is added until you build enough equity, often costing tens of dollars per month for every $100,000 borrowed. Twenty percent down also means a smaller loan and a lower payment.
You don’t always need 20%
Plenty of loan programs accept far less — sometimes 3% to 5%. Putting less down gets you into a home sooner, which can matter when prices and rents are rising. The trade-off is PMI and a larger loan. The calculator shows exactly how much more you would need to reach 20%, so you can decide if closing that gap is worth it.
The cash-on-hand balance
A bigger down payment lowers your loan, but draining your savings to get there is risky. You still need money for closing costs, moving, repairs and an emergency fund. Many buyers are better off putting down enough to avoid PMI — or close to it — while keeping a healthy cash cushion. Run the scenarios in the down payment calculator to find the balance that fits your situation.