What does a down payment do?
A down payment is the portion of the home's purchase price that you pay upfront rather than financing with a mortgage.
For example, a $70,000 down payment on a $350,000 home would leave a mortgage amount of $280,000 before other considerations.
How a larger down payment can help
A larger down payment reduces the amount borrowed. This can reduce the monthly principal-and-interest payment and the total interest paid over the life of the mortgage.
Depending on the loan and down payment, putting more money down may also reduce or eliminate certain mortgage insurance costs.
Do not forget other home-buying costs
Your available cash may also need to cover closing costs, moving expenses, emergency savings, and other costs associated with purchasing and maintaining a home.