$1,422/mo
Principal & Interest — No PMI
A $300,000 home with 25% down requires $75,000 at closing and finances $225,000. At 6.5% over 30 years, the monthly principal and interest is approximately $1,422 — with no PMI required and $474/month less than a zero-down loan on the same home.
Property taxes and homeowner's insurance typically add $300–$600/month, putting total estimated monthly housing costs at $1,722–$2,022.
Calculate Your Exact Payment →The $1,422 figure reflects a $225,000 loan at 6.5% over 30 years. Use the Mortgage Calculator to run your actual home price, rate, or term.
At 25% down, total interest over 30 years is $286,920 — the lowest of any scenario on this page and $95,640 less than a zero-down loan. You repay roughly $2.28 for every $1 borrowed, which is simply the cost of the 6.5% rate over time. With no PMI and 25% starting equity, your monthly cost and balance sheet position are both at their strongest.
| Down Payment | Down Amount | Loan Amount | Monthly P&I | PMI Est./mo | Total Interest |
|---|---|---|---|---|---|
| 0% | $0 | $300,000 | $1,896 | ~$125–$375 | $382,560 |
| 5% | $15,000 | $285,000 | $1,801 | ~$100–$285 | $363,360 |
| 10% | $30,000 | $270,000 | $1,707 | ~$68–$180 | $344,520 |
| 20% | $60,000 | $240,000 | $1,517 | None | $306,120 |
| 25% | $75,000 | $225,000 | $1,422 | None | $286,920 |
| 30% | $90,000 | $210,000 | $1,327 | None | $267,720 |
Moving from 20% to 25% down costs $15,000 more upfront and saves $95/month in P&I — no PMI savings since that's already gone at 20%. The break-even on that extra $15,000 is roughly 13 years at $95/month. If you have other productive uses for that $15,000 — especially investments earning more than 6.5% — running the numbers before committing to 25% down is worthwhile.
With 25% down ($75,000) on a $300,000 home at 6.5% over 30 years, the monthly P&I is approximately $1,422 — with no PMI. Adding property taxes and insurance, total monthly housing costs typically run $1,722–$2,022.
Going from 20% to 25% down costs an additional $15,000 and saves $95/month in P&I. Since PMI is already gone at 20%, the $95/month is the only benefit. At that savings rate, the extra $15,000 breaks even in roughly 13 years. For buyers who expect to stay long-term and want the lowest possible payment, 25% makes sense. For those who can invest the $15,000 at returns above 6.5%, keeping cash and staying at 20% down is generally better math.
Sometimes, but the rate improvement above 20% down is usually marginal. Lenders see the biggest risk reduction at the 20% down threshold (no PMI, 80% LTV). Going to 25% or 30% down may shave 0.125–0.25% off your rate depending on the lender and your credit profile, but it's not guaranteed. The bigger savings from 25% down come from the reduced loan balance — paying interest on $225K instead of $240K — not necessarily a lower rate. Use the mortgage calculator to model both the rate and balance scenarios.