How is a down payment on a house calculated?

According to Credit.com, the down payment on a house is calculated as a percentage of the total cost of the home the buyer is considering. A down payment of anywhere from 3 to 20 percent of the total amount is typical.

There are 0-percent-down loans, but these are not as readily available after the sub-prime mortgage crisis. The larger the deposit made on a home, the less the monthly mortgage payments will be. A 20 percent down payment entices lenders to open more loan options to the prospective home buyer than if they buyer only puts 3 or 5 percent down.