The Situation

Setting the Right Target

The right down payment amount is not a single number — it depends on purchase price, local market norms, available loan programs, and the cost trade-offs between down payment size and PMI, rate, and monthly payment. Most buyers anchor to 20% without evaluating whether a different amount makes more sense for their specific situation.

The right down payment is the one that balances purchase timeline, monthly payment, PMI cost, and emergency reserves — not simply the largest you can accumulate.

— Worthune Decision Framework

• You're saving toward 20% down without having modeled whether a lower down payment and PMI might let you buy sooner with comparable total cost
• Your down payment savings are in a checking account or low-yield savings account, underperforming available HYSA rates
• You haven't calculated the full purchase cost including closing costs and post-purchase reserves alongside the down payment itself