Credit and Qualification
Down Payment Options
Published 2026-07-31 · Last reviewed 2026-07-31 · Reviewed by Jim Lyddon, NMLS #2573609
The down payment affects your loan amount, your monthly payment, whether mortgage insurance applies and how much cash you keep in reserve. A larger down payment is not automatically the better decision, particularly when reserves or competing uses of capital are involved.
What to know
- Larger down payment: lower payment, less or no mortgage insurance, less liquidity.
- Smaller down payment: more reserves, higher monthly cost.
- Mortgage insurance is a cost to evaluate, not a penalty to avoid at any price.
- Model at least two scenarios before deciding.
How Jim approaches this
Bring your specific numbers. General education gets you oriented, but the decision only becomes clear when it is run against your income, your cash position, the property you are considering and how long you plan to keep the loan. That conversation is free and does not require an application.
The information on this website is provided for general education only and does not constitute financial, tax or legal advice. Loan programs, guidelines and availability are subject to change and to borrower and property qualification.
JHL Mortgage, Inc. is an Equal Housing Opportunity lender. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.