Scenario

5% vs. 10% vs. 20% down on a $400,000 house

Side-by-side PITI, PMI, and total interest for three down-payment scenarios on a $400k home.

The difference between 5% and 20% down on a $400k home is dramatic — PMI, monthly payment, loan amount, and lifetime interest all shift. Here’s the full side-by-side at today’s rates.

5% vs 10% vs 20% down on a $400,000 home

At today’s 6.750% rate, 30-year loan. Full PITI and closing costs included.

Scenario
5% down
$20,000
10% down
$40,000
20% down
$80,000
Total monthly PITI$3,186$3,043$2,559
Principal & interest$2,465$2,335$2,076
Monthly PMI
Only with down payment < 20%
$238$225$0
Loan amount$380,000$360,000$320,000
Closing costs$13,448$13,198$12,698
Total cash to close$33,448$53,198$92,698
Total interest over 30 yrs$507,282$480,583$427,185

The real trade-off: cash now vs. cost over time

Putting 20% down on a $400,000 home means $80,000 out of pocket for the down payment alone — plus $12,698 in closing costs. But you skip PMI (saves $238/mo for years) and your monthly drops to $2,559.

Put 5% down and you only need $33,448 cash upfront — but your monthly is $3,186 and over the life of the loan you pay about $80,097 more in interest alone.

Want to run it for your exact credit score? See how credit changes PMI.

Common mistakes buyers make

Treating 20% down as a hard rule
You don’t need 20% to buy. Most first-time buyers put 5–10%. PMI is manageable (often $100–$300/mo on a $400k home) and drops off once you hit 80% LTV.
Draining all savings for 20% down
Hitting 20% to skip PMI is tempting — but leaving yourself with $0 in emergency savings is worse. Keep 3–6 months of expenses after closing.
Forgetting closing costs
Down payment is only part of the cash you need. Closing costs run 2–5% of price. Budget both.
Ignoring FHA for low down payments
FHA allows 3.5% down with lower credit — but MIP usually sticks for the life of the loan. Run both scenarios before committing.
Next step

Plan your down payment savings

See how fast you can hit 5%, 10%, or 20% on a $400,000 home — with realistic savings rates.

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