$1,830/mo
Principal & Interest
A $300,000 home with 3.5% down requires $10,500 upfront and finances the remaining $289,500. At 6.5% over 30 years, the monthly principal and interest is approximately $1,830.
3.5% is the minimum down payment for an FHA loan. FHA loans require MIP (mortgage insurance premium) instead of PMI — typically $140–$200/month on a loan this size. Unlike PMI on conventional loans, FHA MIP often lasts the life of the loan unless you refinance. Property taxes and insurance add another $300–$600/month.
Calculate Your Exact Payment →The $1,830 figure uses a $289,500 loan at 6.5% over 30 years. Use the Mortgage Calculator to model your actual scenario.
Total interest over 30 years at this loan size is $369,300 — roughly 127.6% of the $289,500 borrowed. The $10,500 down payment saves about $13,260 in interest vs. a zero-down loan, while also marginally reducing MIP costs compared to 3% down.
| Down Payment | Down Amount | Loan Amount | Monthly P&I | MI Est./mo | Total Interest |
|---|---|---|---|---|---|
| 0% | $0 | $300,000 | $1,896 | ~$125–$375 | $382,560 |
| 3% | $9,000 | $291,000 | $1,839 | ~$145–$365 | $371,040 |
| 3.5% | $10,500 | $289,500 | $1,830 | ~$140–$200 | $369,300 |
| 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 |
The difference between 3.5% down and 5% down is only $4,500 more upfront — saving $29/month in P&I and reducing PMI costs. If you can stretch to 5%, the math often favors it. If you're using an FHA loan, the key threshold to consider is 10% down, where MIP duration drops from 30 years to 11.
With 3.5% down ($10,500) on a $300,000 home at 6.5% over 30 years, the monthly P&I is approximately $1,830. Adding FHA MIP ($140–$200/mo) plus property taxes and insurance, total monthly housing costs typically run $2,270–$2,630.
Both protect the lender if you default, but they work differently. PMI on a conventional loan cancels automatically once your equity reaches 20%. FHA MIP — if you put less than 10% down — lasts the entire 30-year loan term and can only be removed by refinancing into a conventional loan. FHA also charges an upfront MIP of 1.75% of the loan amount at closing ($5,066 on a $289,500 loan), in addition to monthly premiums.
FHA is typically better for borrowers with credit scores under 680 or higher debt-to-income ratios. Conventional is usually better for borrowers with 680+ credit scores — the PMI rate will likely be lower than FHA's MIP, and it cancels at 20% equity. If you qualify for both, run the numbers: compare the total cost including upfront fees, monthly MI, and how long you plan to stay. The mortgage calculator can help model both scenarios.