THE FIELD GUIDE · MORTGAGE PLANNING
Down payment is a cash decision, too
See how cash at closing changes the loan without losing sight of reserves.
Compare cash and monthly cost together
A larger down payment reduces the amount borrowed. It also leaves less available for moving, closing costs, repairs and emergencies. Compare both monthly payment and remaining cash, rather than optimizing one number alone.
Use a property-specific insurance assumption
Mortgage insurance depends on the loan program and borrower. The PMI input is an editable modeling assumption. It is not a quoted premium and does not automatically determine eligibility or cancellation.
Know which program you are modeling
Conventional PMI, FHA upfront and annual mortgage insurance, and VA funding fees are different charges. Do not substitute a conventional PMI assumption for program-specific rules. Obtain current figures directly from the lender and official program guidance.
Keep cash-to-close separate
Down payment is only one part of cash needed to close. Lender charges, title and settlement services, prepaid items, escrow deposits, credits and earnest money also affect the final figure.
This guide is educational. Confirm the figures and conditions for your actual loan.
Official consumer or market guidance ↗