How much cash a house really takes
The down payment is only part of the bill. You will also owe closing costs - lender fees, title work, appraisal, prepaid taxes and insurance - which typically run 2-5% of the purchase price. This calculator budgets 3% of the home price for closing costs and adds it to your down payment to get the real cash target you need on hand.
The timeline assumes your savings earn interest monthly at your account's APY while you keep contributing. Interest does real work here: at 4% APY, an $80,000 target arrives months sooner than it would in a checking account - one reason to park a house fund somewhere that pays.
Frequently asked questions
Is 20% down really required?
No. Conventional loans go as low as 3% down, FHA requires 3.5%, and VA and USDA loans can be 0% for eligible buyers. The catch: below 20% down you will usually pay private mortgage insurance (PMI), often $50-200+ per month, until you reach 20% equity.
What cash do I need beyond the down payment?
Closing costs typically run 2-5% of the purchase price (this calculator budgets 3%). On top of that, plan for moving expenses, immediate repairs or furniture, and an emergency reserve - many lenders like to see a few months of mortgage payments left in the bank after closing.
Where should I keep my house fund?
For money you'll need within about five years, stick to high-yield savings accounts or CDs. They're FDIC-insured and currently pay meaningful interest. Stocks can drop 20-30% in a bad year - a risk you can't afford when the withdrawal date is close and fixed.