How Much House Can I Afford With 20% Down?

Affordability by salary with 20% down

Assumes a 6.5% rate, no PMI, average taxes/insurance, and a comfortable 28% housing DTI:

• $50K salary → home price about $200,000 (down payment: $40,000)
• $75K salary → home price about $300,000 (down payment: $60,000)
• $100K salary → home price about $410,000 (down payment: $82,000)
• $125K salary → home price about $510,000 (down payment: $102,000)
• $150K salary → home price about $610,000 (down payment: $122,000)
• $200K salary → home price about $810,000 (down payment: $162,000)

What 20% down actually buys you

On a $400,000 home with 20% down ($80,000) at 6.5%:

• Loan amount: $320,000
• Principal + interest: $2,023/month
• Property tax + insurance: about $525/month
• PMI: $0
• Total monthly payment: about $2,548

Compare to 5% down on the same home: monthly payment jumps to roughly $3,000 with PMI. The 20% down buyer saves $450+/month and around $162,000 in total interest over 30 years.

The downsides of 20% down

• You wait years longer to buy — often 5–10 extra years of saving
• You tie up a huge chunk of liquid savings in your home
• Opportunity cost: that same $80K invested at 7% could grow to $610K over 30 years
• If home prices rise faster than your savings rate, you fall behind

When 20% down makes the most sense

• You have ample savings beyond the down payment (emergency fund + retirement on track)
• You're buying in a stable market without rapid appreciation
• You hate the idea of paying PMI
• You want the lowest possible monthly payment for cash flow flexibility
• Your interest rate is high — paying down more upfront has a real return

Practical alternative: split the difference

Many financially-savvy buyers put down 10–15% and invest the rest. They pay some PMI for a few years (which falls off automatically), keep a robust emergency fund, and let their other money compound in index funds. Run both scenarios in the calculator before committing.

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