Down Payment on $600,000 home, 2% down
Down payment amount, loan amount, and PMI estimate for $600,000 home, 2% down. Adjust any field below to try your own numbers.
Down Payment
$12,000.00
Example
A 2% down payment on a $600,000.00 home is $12,000.00, leaving a $588,000.00 loan amount. Add an estimated $18,000.00 in closing costs and you'd need about $30,000.00 in cash to close. Since this is below 20% down, expect roughly $367.50/month in private mortgage insurance (PMI) until you build enough equity.
PMI Required
Below 20% down, expect roughly $367.50/month in private mortgage insurance until you build enough equity.
Loan Amount
$588,000.00
Closing Costs
$18,000.00
Total Cash Needed
$30,000.00
Purchase price split between down payment and loan amount
- Down Payment: $12,000.00
- Loan Amount: $588,000.00
What is a Down Payment Calculator?
A down payment is the upfront cash portion of a home purchase — the purchase price equals your down payment plus your mortgage loan amount. This calculator translates a down payment percentage into an actual dollar amount, shows the resulting loan size, estimates closing costs on top of the down payment, and flags whether your down payment is large enough to avoid private mortgage insurance (PMI).
How much you put down is one of the most consequential decisions in a home purchase — it affects your loan amount, whether you pay PMI, your interest rate, and how much cash you need on hand at closing, separate from your ongoing ability to afford the monthly payment.
Down Payment Options for a $600,000.00 Home
Every row below is computed specifically for this home price, across the down payment tiers tied to common loan programs (FHA's 3.5% minimum up through a traditional 20-30%).
| Down Payment | Amount | Loan Amount | PMI? | Total Cash Needed |
|---|---|---|---|---|
| 3.5% | $21,000.00 | $579,000.00 | Yes | $39,000.00 |
| 5% | $30,000.00 | $570,000.00 | Yes | $48,000.00 |
| 10% | $60,000.00 | $540,000.00 | Yes | $78,000.00 |
| 15% | $90,000.00 | $510,000.00 | Yes | $108,000.00 |
| 20% | $120,000.00 | $480,000.00 | No | $138,000.00 |
| 25% | $150,000.00 | $450,000.00 | No | $168,000.00 |
| 30% | $180,000.00 | $420,000.00 | No | $198,000.00 |
Down Payment Requirements by Loan Type
Conventional loans commonly target 20% down, though many lenders accept 10%, 5%, or even 3% for qualified borrowers — anything below 20% typically triggers PMI until the loan balance drops to 78-80% of the original purchase price. FHA loans allow as little as 3.5% down but require an upfront mortgage insurance premium (around 1.75% of the loan amount) plus ongoing monthly insurance for the life of the loan. VA loans, backed by the Department of Veterans Affairs, can require no down payment at all for eligible veterans and service members. USDA loans similarly allow qualifying rural-area buyers to purchase with no down payment.
Bigger Down Payment vs. Smaller Down Payment
A larger down payment (20%+) typically qualifies you for a lower interest rate, eliminates PMI, reduces total interest paid over the loan's life, and signals lower risk to lenders. The tradeoff is tying up a large amount of cash up front — money that's no longer available for home improvements, an emergency fund, debt payoff, or other investments, and it leaves you more exposed if home values decline shortly after buying. A smaller down payment preserves cash and closing-cost flexibility and lets you invest the difference elsewhere, but means a larger loan, PMI in most cases, and more total interest paid over time. Lenders generally prefer larger down payments since it reduces their risk if the home's value falls.
Where Down Payment Funds Come From
Most buyers save directly, often in a dedicated savings account or CD. Buyers short on savings sometimes use a "piggyback" loan structure — commonly 80-10-10, where a first mortgage covers 80% of the value, a second loan covers 10%, and the buyer puts down the remaining 10%, avoiding PMI without a full 20% down payment. Down payment assistance programs through local governments, housing authorities, or nonprofits offer grants to first-time buyers who meet credit and income requirements. FHA loans specifically allow the entire down payment to come as a gift from a friend or family member with a gift letter. Some buyers also tap a first-time homebuyer IRA withdrawal (up to $10,000 penalty-free per person) or a 401(k) loan (up to the lesser of $50,000 or half the account balance, typically repaid within five years).
Example — Your Current Inputs
A 2% down payment on a $600,000.00 home is $12,000.00, leaving a $588,000.00 loan amount. Add an estimated $18,000.00 in closing costs and you'd need about $30,000.00 in cash to close. Since this is below 20% down, expect roughly $367.50/month in private mortgage insurance (PMI) until you build enough equity.
Additional Example — FHA vs. Conventional
On a $250,000 home, a 3.5% FHA-style down payment is $8,750, leaving a $241,250 loan (plus upfront FHA mortgage insurance and ongoing monthly premiums). A 20% conventional down payment on the same home is $50,000, leaving a $200,000 loan with no PMI at all. The FHA path needs far less cash up front but costs more over time between the larger loan balance and mandatory mortgage insurance; the conventional path needs $41,250 more in cash but avoids insurance premiums entirely.
About These Parameters
- Home Price
- The agreed purchase price of the home. Your down payment and loan amount are both calculated as a share of this figure.
- Down Payment
- The percentage of the purchase price you'll pay in cash up front. 20% avoids PMI on a conventional loan; FHA, VA, and USDA programs allow much lower — or zero — down payments, usually with other tradeoffs like mortgage insurance.
- Estimated Closing Costs
- Loan origination points, appraisal, title insurance, inspection, and other closing fees, commonly estimated around 3% of the purchase price, paid separately from (and in addition to) your down payment.
- Estimated PMI Rate
- The annual private mortgage insurance rate applied to your loan balance when your down payment is below 20%, typically 0.5% to 1.5% per year depending on your credit and loan-to-value ratio. This calculator only applies it when PMI would be required.
Frequently Asked Questions
Do I always need 20% down to buy a home?
No — 20% is simply the threshold that avoids PMI on a conventional loan. FHA loans allow as little as 3.5% down, and VA or USDA loans can require no down payment at all for eligible borrowers. Many buyers put down less than 20% and simply pay PMI until they build enough equity to have it removed.
How do I get rid of PMI once I have it?
On most conventional loans, PMI automatically cancels once your loan balance drops to 78% of the home's original value, and you can typically request early cancellation once you reach 80%, based on your payment history and, sometimes, a new appraisal showing the home has appreciated.
Are closing costs part of my down payment?
No — they're separate. Your down payment reduces your loan amount; closing costs (appraisal, title, origination fees, and similar) are additional cash you need at the closing table on top of the down payment itself.
Can a gift cover my entire down payment?
It depends on the loan program. FHA loans allow the entire down payment to be a gift from a family member or close friend, provided you supply a signed gift letter confirming it doesn't need to be repaid. Conventional loans often allow gift funds too, though some require the borrower to contribute a minimum amount from their own funds, especially on investment or second-home purchases.