Don’t Put Every Dollar Into the House
When I talk with buyers about how much they want to put down on a home, I sometimes hear: “We can put 20% down.”
My next question is often: “But should you?”
There are certainly advantages to putting more money down. You borrow less, your monthly payment is lower, and on a conventional loan, putting 20% down generally means avoiding private mortgage insurance.
But there is another number I think is just as important: How much money will you have left after closing?
Buying the House Is Only the Beginning
It’s easy to become so focused on the down payment and closing costs that we forget what happens the day after closing.
You still need money for moving.
Maybe you need a refrigerator or washer and dryer. The windows suddenly need blinds. The couch from your apartment looks awfully small in the new family room. Your green thumb suddenly starts itching.
And sometimes the expenses are more personal. I know that buying a home can mean family coming from overseas to see that you’re happily settled—and, let’s be honest, to reassure themselves that you’re doing okay. Airfare, having everyone stay with you, sightseeing, and showing them around can become a meaningful expense, too.
Every family has its own version of this. Maybe you’re planning a wedding next year, your child is heading to college, or you simply have other expenses on the horizon.
And then there are the expenses you weren’t planning for.
The air conditioner doesn’t know that you just put most of your savings into the house. Neither does the water heater. And unfortunately, both seem to have terrible timing.
The Biggest Down Payment Isn’t Always the Best Down Payment
Let’s say you have enough savings to put 20% down.
You could put all of it toward the house and get the lowest possible payment.
Or perhaps you put a little less down, accept a somewhat higher monthly payment, and keep more money in savings.
Which is better? You already know my favorite answer: It depends :).
Putting more down may absolutely be the better choice. But not if it leaves you uncomfortable every time an unexpected expense shows up.
That’s why I don’t like looking at the down payment in isolation.
We should also look at your monthly payment, other debts, income stability, upcoming expenses, and—something that’s difficult to put into a spreadsheet—your own comfort level.
There isn’t one magic number everyone should have left in savings. Someone with two stable incomes, significant retirement savings, and few other obligations may be comfortable with a different amount than someone with one income, young children, an older home, or several large expenses coming up.
A mortgage approval can tell you what you qualify to borrow. But it can’t tell you how much money you need left in the bank to sleep comfortably at night.
That matters too.
So perhaps the question isn’t just: “How much house can I afford?”
It’s also: “How much house can I comfortably own?”
Because those aren’t always the same thing.
Sometimes the better financial decision isn’t stretching to make the biggest possible down payment. Sometimes it’s keeping a little more breathing room.
Your down payment gets you into the house. Your savings help you sleep at night once you’re there.
So when we talk about your loan options, don’t just tell me how much you can put down. Let’s talk about how much you should.
Even if it’s just a quick question. No pressure. Just clarity.
The BankSouth Mortgage Advantage
Experience the speed of ReadyApprove from BankSouth Mortgage, where you can secure conditional approval for conforming loan limits within hours.
With ReadyLoan®, you can make this process even easier. Our digital platform lets you apply, track your loan progress, and submit documents securely—all from your computer or mobile device. You’ll be armed with the confidence to quickly submit an offer, and the seller will see you as a serious, prepared buyer.
Have peace of mind with our FREE one-time rate float-down* and no lender fee refinance** options!
When you purchase your home with me at BankSouth Mortgage, you may be able to refinance later with no lender fees. This program offers flexibility as life changes, with the potential for savings when it matters most.
*One-time float down available on 45-120 day rate locks. Float down must be executed at least 15 days prior to closing and must be at least .125 improvement. **This offer may change or end at any time without notice. “No Lender Fees” refers to waived origination charges. Eligibility conditions apply. Subject to credit and property approval.
Blog post date: Wednesday, September 2, 2026
