How Much Should You Really Put Down on a House?
Published 2026-07-31 · Migrify.AI
The "20% down" rule is the most repeated advice in home buying — and one of the most misunderstood. The median first-time buyer actually puts down around 8–9%. Here's how to think about the trade-off with real numbers.
What different down payments cost
On a $400,000 home at 6.66% for 30 years (before taxes and insurance):
- 20% down ($80,000): $2,056/month, no PMI.
- 10% down ($40,000): $2,313/month plus roughly $180 PMI — about $437 more per month.
- 5% down ($20,000): $2,442/month plus roughly $222 PMI.
Try your own price on our free mortgage calculator — it applies PMI automatically below 20% and shows the exact monthly difference. Minimums are lower than most people think: 3% on some conventional programs, 3.5% FHA, 0% for VA and USDA loans.
The case for putting down less
- Liquidity is safety. An emergency fund that survives the purchase matters more than a smaller loan. House-poor with 20% down is worse than comfortable with 10%.
- PMI is temporary. It cancels at 20% equity — through payments or appreciation. The payment difference is often smaller than people assume.
- Waiting has a price. If saving the full 20% takes three more years of rent while prices climb, the "safe" plan can cost more than PMI ever would.
The case for 20%
- Lower payment, no PMI, and often a slightly better rate.
- Instant equity cushion if prices dip — you're far less likely to end up underwater.
- Stronger offers in competitive markets.
The bottom line
Put down as much as you can while keeping a 3–6 month emergency fund and no high-interest debt. That number — not a rule of thumb — is your right down payment. Property taxes and insurance change the picture by state, so use the calculator tuned to your state for the full monthly cost.
Run your own numbers: the free Migrify.AI calculator shows your full payment — taxes, insurance, and PMI included — in seconds, with no sign-up and no credit impact.