A down payment is the cash you pay upfront toward a home's purchase price — the mortgage covers the rest. Put 20% down and you're borrowing the other 80%.
Size matters more than most buyers realize. A bigger down payment shrinks the loan, which lowers the monthly payment and the total interest you'll pay over the life of the mortgage. It also improves your loan-to-value ratio, which can earn you a better rate. And on a conventional loan, reaching 20% down means no private mortgage insurance at all.
But 20% is a milestone, not a rule. Conventional loans can allow as little as 3% down, and FHA loans go as low as 3.5% — you'll just carry mortgage insurance until you build enough equity. The right number balances your savings, your monthly budget, and how long you plan to stay.
Try different amounts in the mortgage calculator to see how the payment moves, and read our guide on how much down payment you actually need.