$1,839/mo
Principal & Interest
A $300,000 home with 3% down requires $9,000 at closing and finances the remaining $291,000. At 6.5% over 30 years, the monthly principal and interest is approximately $1,839 — just $57 less than buying with no money down.
PMI is required on conventional loans below 20% down. At 3% down (97% LTV), expect to add $145–$365/month until you hit 20% equity. Property taxes and insurance typically add another $300–$600/month.
Calculate Your Exact Payment →The $1,839 figure uses a $291,000 loan at 6.5% over 30 years. Use the Mortgage Calculator to enter your actual home price, rate, and down payment for a precise result.
With 3% down, total interest over 30 years is $371,040 — nearly 128% of the loan amount. Your $9,000 down payment saves roughly $11,520 in interest compared to financing the full $300,000, but comes with some of the highest PMI costs available on a conventional loan.
| Down Payment | Down Amount | Loan Amount | Monthly P&I | PMI 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 |
| 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 |
Going from 3% to 10% down costs $21,000 more upfront but saves $132/month in P&I and meaningfully lowers the PMI rate. Going all the way to 20% eliminates PMI entirely — at the cost of $51,000 more upfront.
At 3% down ($9,000) on a $300,000 home, at 6.5% over 30 years, the monthly P&I is approximately $1,839. Adding PMI ($145–$365/mo) plus taxes and insurance brings total estimated monthly housing costs to $2,284–$2,804.
Yes — Fannie Mae's HomeReady and Freddie Mac's Home Possible programs allow 3% down on conventional loans for qualifying buyers. Both programs have income limits and require PMI. If you don't qualify for these programs, most conventional lenders require at least 5% down. FHA loans offer a slightly lower threshold of 3.5% down with fewer income restrictions.
Starting at 97% LTV, you need to reach 80% LTV for PMI cancellation. At 6.5% on a $291,000 loan, that takes approximately 12–13 years of scheduled payments through amortization alone. Home appreciation can shorten this significantly — if the home appreciates to $364,000+, your current balance would be under 80% LTV and you could request early PMI removal based on a new appraisal.