With 10% down on a $350K home, your loan is $315,000 versus $280,000 with 20% down. The larger loan means higher monthly principal and interest, plus you'll pay PMI of roughly $130-$395 per month. Over the time it takes to reach 20% equity, PMI can add $10,000 or more to your total cost.

For conventional loans, you can request PMI removal once your loan balance reaches 80% of the original home value, and it's automatically cancelled at 78%. With 10% down, this typically takes 4-7 years depending on your payment schedule and any home value appreciation. Making extra principal payments accelerates this timeline.

A 10% down payment offers a solid balance between saving time and managing costs. You'll pay less in PMI than with 3-5% down, and you'll reach the 20% equity threshold faster. It's a good option if you have strong credit and steady income but need to buy before you can save the full 20%.