Skip to calculator
Conventional Home Loans by Valley West Mortgage
Home / Conventional cash to close
Conventional purchase comparison tool

Compare down payments by the cash they use—not the label.

Switch between 3%, 5%, 10%, and 20% down, then account for costs, prepaids, escrow, credits, assistance, and funds already paid.

Compare cash-to-close scenarios

Build the conventional transaction

Use the percentage controls for fast comparisons, then replace every cost field with the disclosed or quoted amount.

$
%
Test 3, 5, 10, 15, and 20—but confirm eligibility.
$
$
$
$
$
$
$
$
$

Compare the whole structure: a lower down payment can preserve liquidity but may change the rate, pricing, mortgage insurance, payment, and eligibility. This calculator isolates purchase cash; it does not select the best loan.

Why 3%, 5%, and 20% are not just down-payment choices

Changing the down payment changes the base loan amount and immediate cash use. It can also change eligibility, mortgage insurance, pricing, rate, payment, and the reserves left after closing. A buyer with enough cash for 20% down should still compare that option with a smaller down payment rather than assuming one is automatically superior.

Liquidity is part of affordability: the lowest monthly payment can still create a fragile purchase if the down payment drains the funds needed for moving, repairs, deductibles, or an emergency reserve.

The cash-to-close formula

The Consumer Financial Protection Bureau explains that estimated cash to close includes the down payment and closing costs, minus the deposit already paid, seller credits, and other adjustments. Prepaids and the initial escrow deposit sit inside the closing-cost calculation even though they are not all lender revenue.

Line itemWhat it doesWhat to compare
Down paymentReduces the base loan amountCash retained, payment, mortgage insurance, rate, and pricing
Discount pointsUses cash to obtain a lower rateBreak-even period against the expected time in the loan
Lender creditOffsets eligible upfront costsRate and total cost; CFPB notes a higher rate may be exchanged for the credit
Seller creditOffsets permitted transaction costsContract, appraisal, loan-to-value, occupancy, and program limits
Prepaids and escrowFunds interest, insurance, taxes, and escrow setupClosing date, insurance quote, tax timing, and waiver eligibility

When 20% down may not be the best cash decision

Twenty percent down may avoid borrower-paid private mortgage insurance in many conventional scenarios, but it can also consume a large amount of liquidity. Compare the monthly savings and financed balance with the opportunity cost of the extra cash, the expected holding period, repair plans, and a sensible post-closing reserve. Mortgage-insurance and pricing rules require a file-specific quote.

For broader seller-credit strategy, the main Valley West Mortgage site’s seller-paid closing-cost guide explains how a contract concession fits into the purchase conversation.

Do not bury insurance inside a round number

The first-year homeowners premium and initial escrow can materially change cash due, while the recurring premium changes the monthly housing expense. Get the property-specific quote before choosing between down-payment scenarios. Valley West Insurance provides a mortgage-ready insurance checklist for the coverage, mortgagee clause, effective date, and replacement-cost questions that commonly surface before closing.

How to make the comparison decision-useful

  1. Save one estimate for each down-payment percentage under consideration.
  2. Ask for matching loan options on the same day and compare rate, APR, points, credits, mortgage insurance, payment, and five-year cost.
  3. Use the exact insurance quote, title estimate, taxes, and earnest-money receipt.
  4. Calculate liquid funds remaining after closing—not only the wire amount.
  5. Reconcile the final choice against the Loan Estimate and Closing Disclosure.

Educational estimate: This tool does not determine minimum down payment, loan eligibility, mortgage insurance, rate, pricing, allowable credits, asset eligibility, approval, or program availability. Actual figures come from the selected transaction and disclosures.

Move from cash estimate to loan comparison

The strongest decision connects upfront cash with payment, pricing, and liquidity after closing.

Down-payment guideCompare 3%, 5%, 10%, and 20% down in the right context.Credits vs. points calculatorCompare two Loan Estimate choices by cash, payment, break-even, holding period, and liquidity.Affordability checkupStress-test payment and remaining monthly margin.Rate buydown strategyCompare upfront structure with payment savings and break-even time.Conventional vs. FHACompare the complete cash and mortgage-insurance structure.Prepare to applyConnect cash with assets, income, debts, credit, and property.Option reviewAsk a licensed loan officer for matched scenarios.

Conventional cash-to-close questions

How do I estimate conventional cash to close?

Add the down payment, disclosed costs, prepaids, initial escrow, points, and adjustments. Subtract valid credits, assistance, deposits, and eligible amounts already paid.

Is 20% down always best?

No. It may change mortgage insurance, pricing, payment, and balance, but uses more liquid cash. Compare the whole loan and post-closing reserves.

Do lender credits reduce cash due?

They can offset eligible costs, but CFPB notes that the credit may be exchanged for a higher rate. Compare both upfront and long-term cost.

Does this include the mortgage payment?

No. This tool isolates purchase cash. Use a payment and affordability tool plus the Loan Estimate to evaluate monthly and long-term effects.

Compare structures, not slogans

Ask for matched 3%, 5%, 10%, and 20% scenarios with the same property, date, lock assumptions, insurance, taxes, and expected holding period.

Compare my conventional options