Putting 20% down on a $550,000 house means writing a check for $110,000. Here’s how different down payment amounts compare.
Down Payment Amounts on a $550K House
| Down Payment % | Amount | Loan Amount | PMI Required? |
|---|---|---|---|
| 3% | $16,500 | $533,500 | Yes |
| 5% | $27,500 | $522,500 | Yes |
| 10% | $55,000 | $495,000 | Yes |
| 15% | $82,500 | $467,500 | Yes |
| 20% | $110,000 | $440,000 | No |
| 25% | $137,500 | $412,500 | No |
How Down Payment Affects Your Monthly Mortgage
At 6.5% interest on a 30-year fixed mortgage:
| Down Payment | Loan Amount | P&I Payment | PMI (~0.5%) | Total Payment |
|---|---|---|---|---|
| 3% ($16,500) | $533,500 | $3,372 | $222 | $3,594 |
| 5% ($27,500) | $522,500 | $3,302 | $218 | $3,520 |
| 10% ($55,000) | $495,000 | $3,129 | $206 | $3,335 |
| 20% ($110,000) | $440,000 | $2,781 | $0 | $2,781 |
Putting 20% down saves $739/month compared to 5% down (before taxes and insurance).
Total Interest Paid Over Loan Life
| Down Payment | Loan Amount | Total Interest (30-yr, 6.5%) |
|---|---|---|
| 5% ($27,500) | $522,500 | $665,900 |
| 10% ($55,000) | $495,000 | $630,800 |
| 20% ($110,000) | $440,000 | $560,600 |
20% down saves $105,300 in interest compared to 5% down.
How Long to Save $110,000 for 20% Down
| Monthly Savings | Time to $110,000 |
|---|---|
| $1,000/month | 9.2 years |
| $1,500/month | 6.1 years |
| $2,000/month | 4.6 years |
| $2,500/month | 3.7 years |
| $3,500/month | 2.6 years |
Related Guides
Tags:
