Mortgage payment planning guide
Mortgage Payment on a $400,000 House with 10% Down
When you put down 10% on a $400,000 home, the monthly payment includes more than just principal and interest. This page focuses on the full picture — including the PMI that applies when the down payment is under 20% — so the estimate reflects a realistic monthly housing cost rather than just the loan payment.
Short answer
This estimate uses a $400,000 home price with 10% down, a 6.75% rate, a 30-year term, plus taxes, insurance, and PMI.
Based on a $400,000 home, $40,000 down, plus taxes, insurance, and a PMI estimate of $225/month.
Use the full calculator to change the down payment, interest rate, taxes, insurance, or loan term.
Explanation of assumptions
This example uses a $400,000 purchase price, 10% down ($40,000), a 6.75% interest rate, a 30-year loan term, property taxes, homeowners insurance, and a PMI estimate.
PMI is the key cost that makes the 10% down scenario different from the 20% down comparison. It adds to the monthly payment until the loan balance reaches 80% of the original home value.
Example breakdown
How this estimate works
The page calculates principal and interest from the loan amount, rate, and term, then adds taxes, insurance, and a PMI estimate to reach a fuller monthly total.
PMI is estimated at approximately 0.75% of the loan per year, which is a common mid-range rate. Your actual PMI will depend on credit score and lender.
Assumptions used for this $400,000 estimate
This scenario is built to show the full monthly cost of buying with less than 20% down.
What is included in the monthly payment?
At 10% down, PMI becomes a meaningful part of the monthly total.
Down payment comparison
Choosing 10% vs 20% down changes the loan payment and whether PMI applies.
Includes PMI estimate of $225/month.
Requires $80,000 upfront but eliminates PMI from the payment.
The estimated cost added to the payment because of the smaller down payment.
Planning checks
- Ask the lender for the exact PMI rate — this estimate uses a common range but your rate may differ.
- Check whether the loan program allows PMI cancellation at 20% equity or requires reaching 22%.
- Compare the total monthly payment with take-home pay, not gross income.
- Run the scenario with a slightly higher interest rate to understand the sensitivity.
Common mistakes
- Forgetting to add PMI to the monthly estimate when the down payment is under 20%.
- Treating PMI as permanent — it typically cancels once you reach 20% equity, though timing varies by lender.
- Comparing the 10% down payment with the 20% down payment without including what PMI adds to the monthly total.
- Not asking the lender for the actual PMI rate, which varies by credit score and loan program.
How to use this example
Start with the total payment including PMI, then compare it with your take-home pay and current rent.
If the 10% down total stretches the budget too far, the mortgage calculator makes it easy to test a higher down payment or a lower home price.
Important disclaimer
This is a planning estimate only and not a lender quote. Actual mortgage payments can vary with credit, PMI rate, taxes, insurance, and loan program details. PMI cancellation timing depends on lender policy.
Frequently asked questions
What is the mortgage payment on a $400,000 house with 10% down?
This page estimates the total monthly payment using a 10% down payment, 6.75% rate, 30-year term, and typical taxes and insurance. The key addition at 10% down is PMI, which adds to the monthly total until enough equity is built.
How much does PMI cost on a $400,000 home?
PMI varies by lender, credit score, and loan type but typically runs between 0.5% and 1.25% of the loan amount per year. This example uses a 0.75% annual rate, which works out to roughly $225 per month on a $360,000 loan.
When does PMI go away on a $400,000 home?
PMI typically cancels automatically when the loan balance falls to 78% of the original home value, or you can request removal at 80%. That means PMI on this example would cancel after the loan balance reaches $320,000, which takes roughly nine to ten years of standard payments.
Is 10% down a good choice on a $400,000 home?
It depends on cash reserves, the local market, and the comparison between PMI costs and keeping more cash on hand. Some buyers prefer to put down less and keep reserves; others prefer to eliminate PMI. Use the mortgage calculator to compare the monthly totals side by side.
Does this estimate include taxes and insurance?
Yes. This example adds property taxes, homeowners insurance, and a PMI estimate on top of principal and interest so the monthly total is closer to a real housing budget.