A larger down payment generally reduces the amount you need to borrow, which can lower your monthly principal-and-interest payment. It may also reduce the amount of interest you pay over the life of the mortgage because interest is calculated on the outstanding loan balance. Depending on the loan and your circumstances, a larger down payment may also affect whether you need PMI. To compare your options, keep the home price and interest rate constant and enter different down-payment amounts into a calculator. This lets you see how the loan amount and estimated payment change as your down payment increases. Our mortgage calculator with down payment can help you compare these scenarios. Before putting substantially more money down, however, consider whether doing so would leave you with enough cash for closing costs, emergency savings, repairs, and other homeownership expenses.
