Home Downpayment Calculator

Easily calculate the downpayment, loan amount, and loan-to-value (LTV) for your dream home.

Understanding Down Payments

A down payment is the upfront payment you make when purchasing a home. It represents a percentage of the total home price. The larger your down payment, the smaller the loan amount you'll need to finance. Typically, a down payment ranges between 3% and 20% of the home’s purchase price.

Loan Amount and LTV Explained

The Loan Amount is the portion of the home price that you will finance through a mortgage. It is calculated as the difference between the total home price and the down payment amount. The smaller your down payment, the larger the loan amount will be.

Loan-to-Value (LTV) is a key metric used by lenders to assess the risk of a loan. It is calculated by dividing the loan amount by the home price. A higher LTV means you are borrowing more of the home’s value, which could result in higher interest rates or the need for private mortgage insurance (PMI).

Down Payment, Loan Amount, and LTV Example

For a $400,000 home with a 10% down payment:

- Down Payment = $400,000 x (10 / 100) = $40,000

- Loan Amount = $400,000 - $40,000 = $360,000

- Loan-to-Value (LTV) = ($360,000 / $400,000) x 100 = 90%