$1,801/mo
Principal & Interest
A $300,000 home with 5% down requires a $15,000 down payment and finances the remaining $285,000. At 6.5% interest over 30 years, that works out to approximately $1,801/month in principal and interest — $95 less per month than a zero-down loan on the same home.
PMI is still required at 5% down on conventional loans — typically adding $100–$285/month — until your equity reaches 20%. Property taxes and homeowner's insurance add another $300–$600/month depending on location.
Calculate Your Exact Payment →The $1,801 figure is based on a $285,000 loan at exactly 6.5% over 30 years. Your actual home price, rate, and down payment will produce a different result. The Mortgage Calculator lets you dial in your exact scenario.
At 5% down, your $15,000 upfront reduces total interest by about $19,200 over 30 years compared to no down payment — roughly $1.28 saved in interest for every $1 put down. PMI drops off once your loan balance falls below 80% of the home's value, which typically takes 8–10 years at this rate without appreciation.
Your down payment is a direct lever on three things: loan size, monthly payment, and PMI eligibility.
| 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 |
| 15% | $45,000 | $255,000 | $1,612 | ~$51–$128 | $325,320 |
| 20% | $60,000 | $240,000 | $1,517 | None | $306,120 |
Putting 5% down versus 20% down saves $45,000 in upfront cash, but costs $284/month more — plus PMI. Over 10 years, the monthly difference adds up to $34,080 in extra payments. Whether that's worth preserving the cash depends on your alternatives for the $45,000.
See how a 5% down payment affects costs at different purchase prices. Each page covers rate comparisons, PMI estimates, and 15yr vs. 30yr options.
Browse all 37 price points on the Mortgage & Real Estate hub.
With 5% down ($15,000) on a $300,000 home at 6.5% over 30 years, the monthly principal and interest is approximately $1,801. Adding PMI ($100–$285/mo), property taxes, and insurance typically brings total monthly housing costs to $2,201–$2,686, depending on location.
5% of $300,000 is $15,000. That leaves a $285,000 loan balance. You'll also need funds for closing costs (typically 2–5% of the purchase price, or $6,000–$15,000 on this home), so total cash needed at closing is generally $21,000–$30,000.
Yes — conventional loans allow as little as 3% down, and FHA loans go as low as 3.5%. A 5% down payment is above the minimum for most programs and puts you in a solid position. The main trade-off is PMI, which you'll pay until reaching 20% equity. If you can afford both the down payment and the PMI without straining your monthly budget, 5% down is a reasonable path to homeownership. Use the affordability calculator to check the full payment against your income.
With 5% down at 6.5%, it takes roughly 8–10 years of scheduled payments to reach 20% equity through amortization alone. However, if the home appreciates, you can reach 20% equity faster and request PMI cancellation based on the new appraised value. PMI automatically terminates when your balance reaches 78% of the original purchase price by law.