The short answer
On a $350,000 home, 20% down is $70,000 — plus roughly $10,500 in closing costs at 3%, for $80,500 total — and it eliminates PMI. Put down 10% instead ($35,000) and the loan grows to $315,000, adding about $183.75 a month in PMI for around 95 months, or roughly $17,456 total, until you build enough equity to drop it.
Key takeaways
- 20% down on a $350,000 home is $70,000, and it's the threshold where PMI disappears on a conventional loan.
- 10% down on the same home means an extra $35,000 borrowed and roughly $17,456 in PMI paid over about 95 months.
- Closing costs (commonly 2–5% of the price) are a separate cash requirement on top of the down payment — 3% on $350,000 is $10,500.
- Saving $1,000/month at 4% interest from a $20,000 starting balance reaches an $80,500 goal in 56 months — about 4 years, 8 months.
How much down payment do you actually need
There's no single required number — it depends on the loan program. On a $350,000 home, here's what different down payment levels mean for your loan amount and monthly payment:
| Down % | Down Payment | Loan Amount | Monthly Payment | PMI/mo |
|---|---|---|---|---|
| 3% | $10,500 | $339,500 | $2,145.87 | $198.04 |
| 5% | $17,500 | $332,500 | $2,101.63 | $193.96 |
| 10% | $35,000 | $315,000 | $1,991.01 | $183.75 |
| 15% | $52,500 | $297,500 | $1,880.40 | $173.54 |
| 20% | $70,000 | $280,000 | $1,769.79 | $0.00 |
FHA loans open the door at 3.5% down for qualifying credit, and VA or USDA loans can waive the down payment entirely for eligible borrowers. Conventional loans commonly start around 3–5%, but every point below 20% adds PMI to the monthly payment on top of principal and interest.
The PMI tradeoff of putting down less than 20%
Private mortgage insurance protects the lender, not you, but you pay for it whenever equity falls short of 20%. On the $350,000 example at 10% down, the $315,000 loan carries about $183.75 a month in PMI. That sounds small next to a $1,991 mortgage payment, but it compounds over time:
Estimated PMI duration to reach 20% equity: ~95 months (about 8 years)
Total PMI paid over that period: ~$17,456
That's real money that builds no equity and buys no house — it simply insures the lender's risk until your loan balance drops enough relative to the home's value. Once you cross the 20% equity line, PMI can typically be canceled on request, which is why borrowers who can get there faster (through extra principal payments or rising home value) often ask their servicer to reassess sooner rather than waiting for automatic termination.
Building a realistic savings timeline
The calculator doesn't just tell you the target — it tells you when you'll hit it, based on what you're already saving. Starting from $20,000, needing $80,500 (20% down plus 3% closing costs on the $350,000 example), and contributing $1,000 a month at a modest 4% return:
Amount still needed: $60,500
Months to goal: 56 (about 4 years, 8 months)
Two levers move that date the most: the monthly contribution and the target itself. A smaller down payment percentage shrinks the amount needed but adds PMI once you buy, so it's worth comparing the total upfront cash against the total monthly cost — including PMI — for a few different down payment levels before locking in a target.
Related calculators
- Mortgage Calculator — run the full monthly payment breakdown once you've settled on a loan amount.
- House Affordability Calculator — work from your income to see what home price fits your budget.
- Refinance Calculator — revisit your rate later once you've built equity past the PMI threshold.