Loan amount
A larger down payment reduces the amount financed and generally lowers principal and interest.
Down payment
More down is not always better, and less down is not always worse.
The right down payment should balance monthly payment, mortgage insurance, cash reserves, liquidity, and the loan program that best fits the transaction.
Mortgage insurance
Higher equity can reduce or eliminate certain mortgage-insurance costs depending on the loan program.
Liquidity
Using more cash for the down payment leaves less money available for reserves, repairs, moving, investments, or emergencies.
Program differences
Conventional, FHA, VA, and USDA loans use different down-payment rules and fee structures.
Seller and lender credits
Credits can sometimes reduce eligible closing costs without changing the down payment itself.
Compare scenarios
Model several down-payment levels instead of assuming the maximum cash contribution is automatically the best choice.