How Much Down Payment Do You Need to Buy a Home?
A 20% down payment avoids private mortgage insurance (PMI) in many markets and lowers your loan amount. On a $400,000 home, 20% down ($80,000) versus 10% ($40,000) can save hundreds per month in EMI and PMI — but ties up more cash upfront.
20% vs 10% down
20% down: smaller loan, often no PMI, lower monthly payment.
10% down: less cash needed at closing, but PMI and higher EMI until you reach ~20% equity.
Do not drain emergency savings
Keep 3–6 months of expenses after closing costs. Use the down payment calculator with your target home price and savings.