Real Estate
Home down payment: how it affects your mortgage
See how a larger down payment reduces the mortgage principal, payment and total interest.
loan amount = property price - down paymentFor a $2,500,000 home at 9% over 20 years:
| Down payment | Loan amount | Payment | Total interest |
|---|---|---|---|
| 10% ($250,000) | $2,250,000 | $20,243.83 | $2,608,520.16 |
| 20% ($500,000) | $2,000,000 | $17,994.52 | $2,318,684.59 |
| 30% ($750,000) | $1,750,000 | $15,745.20 | $2,028,849.01 |
A larger down payment usually lowers payment and interest, but should not consume funds needed for closing costs, repairs and emergencies. Required percentages depend on the lender and product.
The down payment does not automatically include appraisal, notary, registration or taxes. Enter both price and down payment in the mortgage calculator.