Putting 20% down on an $850,000 house means writing a check for $170,000. Here’s how different down payment amounts compare.
Down Payment Amounts on an $850K House
| Down Payment % | Amount | Loan Amount | PMI Required? | Loan Type |
|---|---|---|---|---|
| 5% | $42,500 | $807,500 | Yes | Jumbo |
| 10% | $85,000 | $765,000 | Yes | Conforming |
| 15% | $127,500 | $722,500 | Yes | Conforming |
| 20% | $170,000 | $680,000 | No | Conforming |
| 25% | $212,500 | $637,500 | No | Conforming |
Note: 2025 conforming loan limit is $766,550. Loans above this require jumbo financing with stricter requirements.
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 |
|---|---|---|---|---|
| 5% ($42,500) | $807,500 | $5,103 | $336 | $5,439 |
| 10% ($85,000) | $765,000 | $4,835 | $319 | $5,154 |
| 15% ($127,500) | $722,500 | $4,567 | $301 | $4,868 |
| 20% ($170,000) | $680,000 | $4,298 | $0 | $4,298 |
Putting 20% down saves $1,141/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% ($42,500) | $807,500 | $1,029,000 |
| 10% ($85,000) | $765,000 | $975,000 |
| 20% ($170,000) | $680,000 | $866,700 |
20% down saves $162,300 in interest compared to 5% down.
How Long to Save $170,000 for 20% Down
| Monthly Savings | Time to $170,000 |
|---|---|
| $2,000/month | 7.1 years |
| $2,500/month | 5.7 years |
| $3,000/month | 4.7 years |
| $4,000/month | 3.5 years |
| $5,000/month | 2.8 years |
Income Requirements
To afford an $850K house, you’ll need approximately:
| Down Payment | Monthly Payment (PITI est.) | Required Income (28% rule) |
|---|---|---|
| 10% | $5,800 | ~$249,000 |
| 20% | $5,000 | ~$214,000 |
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