Simple Home Affordability Calculator: How Much Home Can You Afford?
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Figure out how much you should put down on a home with our down payment calculator.
What is a down payment?
A down payment is what you pay upfront and out of pocket for a home. Your down payment offsets how much money you need to borrow for a mortgage, which covers the remaining cost of the home.

For example, let’s say you want to buy a home that costs $250,000. You have $25,000 in savings to make a down payment, covering 10% of the home’s value. That means your mortgage will have to cover the remaining 90% of the purchase, or $225,000.
Conventional wisdom might tell you to put down at least 20% of the home’s value, and that may be right for those with significant savings or an existing home to sell. For others, it may be better to put down a lesser amount and start building equity. Just know that when you put down an amount less than 20%, you might be required to pay for mortgage insurance, which is an additional cost that’s bundled into your monthly payment. But, don’t fret! Mortgage insurance is only temporary, and once you’ve established 20% or more equity in your home, you won’t need to pay for that additional amount anymore.
Credit Score
Credit Score
Your credit score helps determine whether you’ll qualify for a mortgage and how much money you can borrow. It gives lenders an idea of your track record for repaying debt.

The good news is: you don’t need a perfect credit score to buy a home. But, improving your credit score is a good idea if you’re thinking about getting a mortgage. A higher credit score will often qualify you for better mortgage rates and lower monthly payments.

Your first step? Get your full credit report (for free!) from, a government-run site sponsored by the three biggest nationwide credit reporting companies, Experian, Equifax, and TransUnion.
Get pre-approved to see exactly how much home you can afford.
Find a top real estate agent that can help get you the best deal on a home.

Read our guide and start saving up for the home of your dreams.

Frequently Asked Questions

Our down payment calculator takes into account your location, the home’s value, and credit score to estimate your down payment amount. Keep in mind that your mortgage selection depends on other factors based on your financial situation. Lenders help homebuyers choose down payment and mortgage options on a case-by-case basis. Consult your lender for a more accurate calculation based on your specific financial history.

Many lenders recommend a down payment of at least 20%, so you won’t have to factor in mortgage insurance for your monthly payments. Larger down payments also generally lead to lower interest rates, meaning you end up paying less for your mortgage in the long run. However, 20% doesn’t always need to be the go-to number and many loan programs support down payments as low as 3%. In fact, according to a survey conducted by Country Financial in 2019, more than 50% of buyers surveyed put down less than 10% on their home purchase. What you end up paying out-of-pocket for your down payment varies—it depends on your financial circumstances, whether you currently rent or own your existing home, and the requirements based on the type of loan you select. Our down payment calculator can help you crunch the numbers and find that sweet spot, but a licensed loan originator can show you the right down payment and loan product for your financial situation.
There are many factors that you should consider when deciding on what loan program is right for you, such as your down payment amount, credit score, your location, requested loan amount, and more. You should decide on a loan that makes the most financial sense for your home purchase. If making a 20% down payment with a conventional loan would run your savings dry, a lower down payment with PMI might be your best option. Or perhaps an FHA loan may work out better for you. Talk through your options with your lender and consult a trusted financial advisor before deciding on a home loan.

Tips and tricks for first-time homebuyers

Skip the novice mistakes and buy your dream home with confidence. Visit our Buyer Resource Center for the latest home buying advice backed by top real estate agents, rigorous research, and data analysis.

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