Is 20% down payment required for a mortgage?

No, 20% down is not required. Many loans allow 3-5% down (conventional), 3.5% (FHA), or even 0% (VA/USDA). However, putting less than 20% down typically requires Private Mortgage Insurance (PMI), adding $50-200/month to your payment.

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Q: How much is a mortgage payment on a $300,000 house?

At 7% interest with 20% down ($60,000), your monthly principal and interest payment would be about $1,597 on a 30-year loan. Add property taxes (~$250/mo) and insurance (~$100/mo) for a total around $1,950/month.

Q: How much house can I afford with $100k salary?

With a $100,000 salary, you can typically afford a home priced between $300,000-$400,000, assuming a 20% down payment, good credit, and minimal other debts. Lenders generally want your housing costs below 28% of gross income.

Q: What is PMI and when can I remove it?

PMI (Private Mortgage Insurance) protects the lender if you default. It's required when your down payment is less than 20%. You can request PMI removal when you reach 20% equity, and it's automatically removed at 22% equity.

Home Price

Down Payment

Down %

Interest Rate

Current avg: 6.8% (30-yr fixed)

Loan Term

Taxes, Insurance & PMI

Property Tax / Year

Insurance / Year

HOA / Month

PMI

$0/mo

Monthly Payment $0 Principal & Interest only

Principal & Interest $0

Loan Amount $0

Total Interest $0

Total Cost $0

Monthly Payment Breakdown

Loan Balance Over Time

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30 years - -

20 years - -

15 years - -

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Common Home Price Examples

$250,000$50,000$1,331

$300,000$60,000$1,597

$350,000$70,000$1,863

$400,000$80,000$2,129

$500,000$100,000$2,661

$750,000$150,000$3,992

*30-year fixed at 7% interest, principal & interest only

Frequently Asked Questions

How much is a mortgage payment on a $300,000 house?

At 7% interest with 20% down ($60,000 down payment, $240,000 loan):

Principal & Interest: $1,597/month
Property Tax: ~$250/month (varies by location)
Home Insurance: ~$100/month
Total Payment: ~$1,950/month

With only 10% down, add PMI (~$100/month) for a total around $2,150/month.

What is a good mortgage interest rate in 2026?

In January 2026, average 30-year fixed mortgage rates are around 6.5-7.5%.

Excellent rate: Below 6.5%
Good rate: 6.5-7.0%
Average rate: 7.0-7.5%
High rate: Above 7.5%

Your rate depends on credit score (740+ gets best rates), down payment size, and loan type.

How much house can I afford with $100k salary?

With a $100,000 annual salary, you can typically afford:

Conservative: $300,000 home (3x salary)
Moderate: $350,000 home (3.5x salary)
Aggressive: $400,000 home (4x salary)

The 28/36 rule: Keep housing costs below 28% of gross income ($2,333/month) and total debt below 36%.

Is 20% down payment required?

No, 20% is not required. Here are common options:

Conventional: 3-5% minimum down
FHA: 3.5% minimum down
VA: 0% down (veterans/military)
USDA: 0% down (rural areas)

Less than 20% down = PMI required (~0.5-1% of loan/year), but you can build equity faster by getting into a home sooner.

What is PMI and when can I remove it?

PMI (Private Mortgage Insurance) protects the lender if you default. It's required when your down payment is less than 20%.

Cost: 0.5-1% of loan amount per year ($50-200/month on typical loans)
Request removal: When you reach 20% equity
Automatic removal: At 22% equity (by law)

You can reach 20% equity through payments, home appreciation, or home improvements.