Jeff Shin · Head of Mortgage
NMLS #1041652 · Barrett Financial Group, L.L.C. NMLS #181106

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How much the payment drops if I put 5% more down

Putting 5% more down on the same house shrinks the loan by 5% of the price, so principal and interest drop a bit, in proportion. If the extra cash moves you from under 20% down to 20%, the PMI line can drop off too, and that can be the bigger move. Type both versions into the Purchase calculator and read the two Total Monthly Payment numbers side by side.

Jeff Shin, NMLS #1041652 · Sep 22, 2026 · 4 min read

Here's the honest answer: less than most people hope on principal and interest, and sometimes a lot more than they expect once PMI is in the picture. "5% more down" means 5% of the home price, not 5% of the loan and not 5 points of rate. A smaller loan makes a smaller principal and interest payment. That's a real drop, but a modest one. The bigger swing is what that extra cash does to the PMI line. The tool shows both in about a minute.

Why "5%" means 5% of the price

  • Down payment is measured against Home Price. Going from 10% down to 15% down on a $400,000 house means $20,000 more cash.
  • Taxes, insurance, and HOA don't move. Those lines stay the same in both runs. Only principal and interest and PMI change.

So the real question is where 5% more down lands you. From 5% to 10% is a different story than from 15% to 20%.

Run it in the tool

Open the Purchase calculator. The screen has Loan Type, Home Price, Down Payment, Credit Score, Loan Term, Target Closing Date, Starting rate assumption, Monthly HOA, Annual Property Tax, and Annual Insurance.

First run, the down payment you have today.

  1. Home Price. Type the price you'd offer. Keep it the same in both runs.
  2. Down Payment. Type the cash you actually have set aside right now.
  3. Loan Type, Credit Score, Loan Term, Target Closing Date. Fill these to match your deal.
  4. Starting rate assumption. Use a rate from a quote you already have. Nothing here is a BankPricer rate. Use the same rate in both runs.
  5. Monthly HOA, Annual Property Tax, Annual Insurance. Type the real numbers for this house so Total Monthly Payment is what you'd actually pay.

Write down three numbers: principal and interest, PMI (or zero), and Total Monthly Payment.

Second run, 5% more down.

Take 5% of the Home Price. On $400,000 that's $20,000. On $300,000 it's $15,000. Add that to the Down Payment field. Change nothing else. Read the same three numbers.

Now compare.

  • Principal and interest, run one minus run two. Pure loan-size effect. Modest, and it's there no matter where you started.
  • PMI, run one minus run two. If run one had a PMI line and run two shows a smaller one or none, this is the extra cash doing its real work. Crossing 20% down can remove it. If you were already at 20% or more, this line is zero.
  • Total Monthly Payment, run one minus run two. That's the answer for your house, at your rate.

If the drop is mostly principal and interest, 5% more down is a modest monthly win. If a good chunk is PMI leaving, it's a bigger one.

Cash at closing versus the monthly drop

The extra 5% of the Home Price is in the house now, not in savings. The monthly drop is the Total Monthly Payment difference from the two runs. Decide whether you want the lower payment or the cushion.

If 5% more down doesn't get you to 20%, the PMI line may shrink rather than vanish. Read what the tool shows.

If you want a second pair of eyes

Bring both runs. Jeff Shin, NMLS #1041652, originates from Chicago with Barrett Financial Group, L.L.C. He can help you read the PMI change, check your rate assumption, and talk through whether the extra cash is better in the down payment or kept in savings.

Get In Touch

A calculator result isn't a commitment to lend. A blog post can't lock a rate.

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Jeff Shin, NMLS 1041652. Barrett Financial Group, L.L.C. Chicago. Equal Housing Lender. Not a commitment to lend.