---
title: Compare down payments and leverage
description: "Compare the cash you preserve with the payment you save. A lower loan balance may improve payment economics while using more of your capital. ## Calculate the loan amount For an illustrative $500,000 purchase, 20%, 25%, and 30% down equal…"
url: "https://www.shorttermrentaladvisory.com/docs/compare-down-payment-options/"
updated: "2026-10-06"
category: Financing Comparisons
---

# Compare down payments and leverage

Compare the cash you preserve with the payment you save. A lower loan balance may improve payment economics while using more of your capital.

## Calculate the loan amount

For an illustrative $500,000 purchase, 20%, 25%, and 30% down equal $100,000, $125,000, and $150,000. The corresponding loan amounts are $400,000, $375,000, and $350,000. These are arithmetic examples, not available financing offers.

## Read the complete comparison

Review rate, payment, points, prepayment terms, estimated cash to close, and cash flow together. Different leverage choices may have different preliminary pricing or program eligibility, so holding the rate constant is useful only as a controlled example.

## Protect operating liquidity

Account for closing costs, prepaid items, required reserves, furnishings, repairs, and your own operating cushion. The lowest monthly payment may not be the best fit if it leaves insufficient cash for the transaction and operation.

![STR Advisory platform example for compare down payments and leverage](https://www.shorttermrentaladvisory.com/wp-content/uploads/2026/10/stra-down-payment-comparison.png)
Platform example. The property and figures shown may differ from your analysis.

## Related help

- [Compare rates, points, and prepayment](https://www.shorttermrentaladvisory.com/docs/compare-rates-points-and-prepayment/)
- [Understand cash to close](https://www.shorttermrentaladvisory.com/docs/understand-cash-to-close/)

[**Analyze a Property**](https://app.shorttermrentaladvisory.com/investor/check-options) · [Contact STR Advisory](https://www.shorttermrentaladvisory.com/contact/)

Property and financing outputs are preliminary estimates, not an approval, rate lock, commitment, or guarantee. Eligibility and final terms require professional review and lender underwriting.