The amount of the down payment is equal to the difference between the cost of the residence and the amount of the loan(s). The standard down payment for a mortgage is 20%. Although, sometimes you can put down as little as 3% to 10% if the loan is through a government agency. Some advantages and disadvantages of these percentages: You'll have a smaller loan and thus will pay less in interest payments over the life of the loan. You avoid the additional monthly cost of the Private Mortgage Insurance. PMI goes to protect the lending company from the event of default by the home buyer. A lower down payment means higher monthly payments. You may incur private mortgage insurance or funding fees (which effectively creates a loan balance somewhat greater than what you actually borrow).