Down Payment: 3% vs 20% in 2025 💰
Which Saves More Money? | Complete PMI Analysis
💡 20% Down Saves $72K-$108K in PMI!
3% down gets you in with $9K but costs $150-225/month PMI for 7-10 years ($18K-$27K total). 20% down eliminates PMI completely. Get pre-approved to see your options with different down payments.
Compare Down Payment Options →Your 10-day research revealed the brutal truth: 3% down gets you in the door but costs $72K-$108K more over 30 years in PMI. This complete analysis shows exactly how much each down payment option costs with REAL numbers. Bottom line: get pre-approved to see which down payment works for YOUR budget.
📊 Complete Down Payment Comparison: $300,000 Home
| Down Payment | Credit Score | PMI Cost | Monthly Savings | Approval Odds |
|---|---|---|---|---|
| 3% Conventional | 620+ | 0.5-1.5% | Highest flexibility | Good if 620+ |
| 3.5% FHA | 580+ | 1.75% upfront + lifetime | Mid-range | Easier approval |
| 10% Down | 600+ | 0.3-0.5% | Moderate | Good |
| 20% Down | 620+ | $0 (none) | Low payment | Excellent |
💰 Real Cost Breakdown: $300,000 Home
3% Down ($9,000)
10% Down ($30,000)
20% Down ($60,000)
+ Save $100-200/month on lower rate!
💎 20% Down Saves $18K-$27K in PMI!
Plus lower interest rate saves another $100-200/month. Get pre-approved to see your options.
Get Pre-Approved Now →✓ Compare all options ✓ See PMI costs ✓ Calculate savings
🎯 Which Down Payment Should YOU Choose?
Choose 3% Down If:
- ✓ Limited savings: Only have $9K-$15K saved (need reserves for closing + emergencies)
- ✓ Renting costs more: Monthly rent > mortgage + PMI payment
- ✓ Prices rising fast: Homes appreciating 3-5% annually, can't save fast enough
- ✓ Need to buy NOW: Job relocation, family reasons, lease ending
- ✓ Plan to refinance: Will remove PMI once you hit 20% equity (5-7 years)
Choose 20% Down If:
- ✓ Have $60K+ saved: Can afford 20% down + closing costs + 6-month reserves
- ✓ Long-term ownership (10+ years): PMI savings compound over time
- ✓ Want lowest payment: No PMI + lower rate = $250-425/month savings
- ✓ Stronger offers: Sellers prefer 20% down buyers (less likely to fall through)
- ✓ Avoid PMI hassle: No need to refinance later to remove PMI
❓ Frequently Asked Questions
How much down payment do I really need in 2025?
Minimum down payments 2025: Conventional 3% ($9K on $300K home), FHA 3.5% ($10,500), VA 0% (veterans), USDA 0% (rural). However, 20% down ($60K) eliminates PMI, saves $72K-$108K over 30 years, and gets you 0.25-0.5% lower rate. Choose 3% if you need to buy now with limited savings, 20% if you can wait and save for maximum long-term savings.
What are the benefits of 20% down payment?
20% down benefits: (1) NO PMI saves $150-250/month = $72K-$108K over 30 years, (2) Lower interest rate 0.25-0.5% = $100-200/month savings, (3) Lower monthly payment overall, (4) More equity from day 1 = better financial position, (5) Stronger offers (sellers prefer 20% down buyers), (6) Easier approval with lower DTI ratio.
Is it better to put 3% down or wait to save 20%?
DEPENDS on your situation. Put 3% down if: (1) Renting costs more than mortgage + PMI, (2) Home prices rising faster than you can save (2-3% annually), (3) Need to buy now for job/family reasons. Wait for 20% if: (1) Renting is cheaper than buying, (2) Can save $1,000+/month toward down payment, (3) Staying in home 10+ years (PMI savings compound). Calculate: if saving 20% takes 3+ years, buy now with 3% down and refinance later to remove PMI.
How much is PMI on a $300,000 home?
PMI on $300K home with 3% down: $150-225/month (0.5-1.5% annually). Total PMI cost: Conventional = $18K-$27K until 20% equity (7-10 years), FHA = $72K-$108K for LIFETIME (30 years unless refinance). PMI rate depends on credit score: 760+ = 0.5%, 700-759 = 0.75%, 680-699 = 1%, 620-679 = 1.5%.
🚀 Ready to Choose Your Down Payment?
Get pre-approved to see exactly how much you'll save with different down payment options.
Compare Down Payment Options →