Putting 20% down on a $350,000 house means writing a check for $70,000. This price point sits right around the national median home price, which means you are competing with a large pool of buyers — many of whom are also weighing the same down payment decision. Whether you stretch for the full 20% or go with a smaller amount depends on your savings, your market, and how long you plan to stay.
Down Payment Amounts on a $350K House
| Down Payment % | Amount | Loan Amount | PMI Required? |
|---|---|---|---|
| 3% | $10,500 | $339,500 | Yes |
| 5% | $17,500 | $332,500 | Yes |
| 10% | $35,000 | $315,000 | Yes |
| 15% | $52,500 | $297,500 | Yes |
| 20% | $70,000 | $280,000 | No |
| 25% | $87,500 | $262,500 | No |
At $350K, the full range of conventional and government-backed loan programs is available to you. This price is well under the conforming loan limit, so you won’t need a jumbo loan in any market. That gives you access to the most competitive interest rates and the widest selection of lenders.
The practical difference between 5% down ($17,500) and 20% down ($70,000) is $52,500 in additional upfront cash. That is real money, but it buys you significantly lower monthly payments and avoids years of PMI premiums.
How Down Payment Affects Your Monthly Mortgage
At 6.5% interest on a 30-year fixed mortgage:
| Down Payment | Loan Amount | P&I Payment | PMI (~0.5%) | Total Payment |
|---|---|---|---|---|
| 3% ($10,500) | $339,500 | $2,146 | $142 | $2,288 |
| 5% ($17,500) | $332,500 | $2,102 | $139 | $2,241 |
| 10% ($35,000) | $315,000 | $1,991 | $131 | $2,122 |
| 20% ($70,000) | $280,000 | $1,770 | $0 | $1,770 |
Putting 20% down saves $471/month compared to 5% down (before taxes and insurance).
That $471 monthly savings adds up to $5,652 per year. Over a 10-year period in the home, you save $56,520 in total payments — and that does not include the interest savings from carrying a smaller loan balance.
Your total monthly housing cost will also include property taxes and homeowners insurance. On a $350K home, property taxes vary enormously by state — from under $2,000/year in states like Alabama and West Virginia to over $8,000/year in New Jersey and Illinois. Homeowners insurance adds another $1,200-$2,800 per year depending on your location and coverage level.
PMI at the $350K Price Point
With 5% down on a $350K home, PMI typically runs $100-$170 per month. That translates to $1,200-$2,040 per year in extra housing costs that do not build equity or reduce your loan balance.
How long will you pay it? On a conventional loan, PMI drops off once your loan balance reaches 80% of the original purchase price — that is $280,000 on a $350K home. Making regular payments at 6.5%, that takes about 9 years. If you make extra principal payments or your home appreciates, you can get there faster.
One strategy worth considering: put 10% down ($35,000) instead of agonizing over the full 20%. This cuts your PMI roughly in half compared to 5% down, keeps $35,000 more cash in your pocket compared to 20% down, and still gives you a very competitive monthly payment. For many buyers at the $350K level, 10% down is the sweet spot.
Total Interest Paid Over Loan Life
| Down Payment | Loan Amount | Total Interest (30-yr, 6.5%) |
|---|---|---|
| 5% ($17,500) | $332,500 | $423,700 |
| 10% ($35,000) | $315,000 | $401,400 |
| 20% ($70,000) | $280,000 | $356,700 |
20% down saves $67,000 in interest compared to 5% down.
The interest savings are meaningful but they assume a full 30-year hold. If you sell or refinance in 7-10 years (which is common for starter and mid-range homes), the real interest savings are closer to $25,000-$40,000. Still significant, but it changes the calculus about whether waiting to save more makes sense.
How Long to Save $70,000 for 20% Down
| Monthly Savings | Time to $70,000 |
|---|---|
| $500/month | 11.7 years |
| $1,000/month | 5.8 years |
| $1,500/month | 3.9 years |
| $2,000/month | 2.9 years |
| $2,500/month | 2.3 years |
Using a high-yield savings account at 4-5% APY shaves a few months off each timeline. At $1,500/month with 4.5% annual interest, you reach $70,000 in about 3.5 years instead of 3.9.
If you are currently renting at $1,200-$1,600/month, each year you wait costs $14,400-$19,200 in rent that builds no equity. Two years of rent at $1,500/month is $36,000 — more than the difference between 5% and 20% down. This is why many financial advisors recommend buying when you can comfortably afford the payment rather than waiting for a specific down payment target.
What Income Do You Need for a $350K House?
| Down Payment | Est. Monthly Housing Cost | Income Needed (28% rule) |
|---|---|---|
| 5% ($17,500) | ~$2,800 | ~$120,000/yr |
| 10% ($35,000) | ~$2,660 | ~$114,000/yr |
| 20% ($70,000) | ~$2,350 | ~$100,700/yr |
These estimates include property taxes (~$4,500/yr) and homeowners insurance (~$1,800/yr). Your actual income requirement may be lower if you have minimal other debts. Lenders allow a total debt-to-income ratio up to 43-45%, so a household earning $90,000 with no other debts could potentially qualify at 5% down.
Closing Cost Budget
Beyond the down payment, closing costs on a $350K home run $7,000 to $14,000 (2-4%). This covers the appraisal, title search, title insurance, attorney fees, origination charges, and prepaid items like property tax and insurance escrow.
With 20% down, plan for $77,000-$84,000 in total cash at closing. With 5% down, it is $24,500-$31,500. In either case, avoid putting every dollar toward the purchase — keep at least 3-6 months of expenses in reserve for emergencies and unexpected repairs that inevitably come with homeownership.
Should You Put 20% Down on a $350K House?
Put 20% down if you have $70,000 saved without draining your emergency fund, you want the lowest monthly payment, your market is not rapidly appreciating, or you plan to stay for 7+ years and want to minimize total housing costs.
Put 10% down if you want a balance between a manageable monthly payment and keeping more cash available. This is often the smartest middle ground at this price point — you cut PMI roughly in half compared to 5% down while keeping $35,000 more liquid than the 20% option.
Put 3-5% down if you are eager to stop renting, qualify for FHA or Conventional 97 programs, and have a household income that comfortably supports the higher monthly payment. The extra PMI and interest costs are real, but they are the price of getting into the market sooner.
Related Guides
- Down payment on a $300K house
- Down payment on a $400K house
- $350K mortgage monthly payment
- How much house on $100K salary
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