Brought to you by , Funkhouser Real Estate Group, , scott@HarrisonburgHousingToday.com
Tuesday, November 18, 2025
Conventional wisdom often encourages you to make the largest downpayment you can afford - which isn't necessarily bad advice. A larger downpayment reduces the size of your mortgage, which in turn lowers your monthly payment, and who doesn't want a lower mortgage payment!
But -- and this is important -- it's not always the best choice for every buyer, especially if it means emptying (or nearly emptying) your savings account to do it.
Your Downpayment Shouldn't Leave You Cash-Strapped
Buying a home often comes with a number of one-time or ongoing expenses beyond your monthly mortgage payment. If you use all of your available cash for your downpayment and closing costs, you might find yourself without the funds you need in those first few months (or years) of homeownership.
Here are a few examples of where that reserve cash might be needed:
Moving expenses -- Even if you are moving on your own (with friends and family) a move can come with the cost of renting a truck, moving supplies, and possibly taking time off of work.
Home updates or repairs -- From replacing carpet to painting walls, you might need to spend some money on your new home just before or just after moving in.
Emergency savings -- Illness, job changes, car repairs, or family emergencies can all pop up unexpectedly.
Life events -- A new baby, an aging parent, or a health event could bring on new financial needs quite quickly.
While it's smart to make as sizable of a downpayment as is possible, it's also very reasonable to keep a decent sized financial cushion in place for life's unpredictability.
If you're able to make a larger downpayment, that's great -- but don't feel pressure to maximize it at the expense of your financial flexibility. Having a slightly higher mortgage payment might be worth it if it means knowing that you have funds set aside for life's unexpected twists and turns.
We'll want to work with your lender to identify the best balance -- one that allows you to buy the home you want and still be comfortable knowing you're financially prepared for what comes next.
But -- and this is important -- it's not always the best choice for every buyer, especially if it means emptying (or nearly emptying) your savings account to do it.
Your Downpayment Shouldn't Leave You Cash-Strapped
Buying a home often comes with a number of one-time or ongoing expenses beyond your monthly mortgage payment. If you use all of your available cash for your downpayment and closing costs, you might find yourself without the funds you need in those first few months (or years) of homeownership.
Here are a few examples of where that reserve cash might be needed:
Moving expenses -- Even if you are moving on your own (with friends and family) a move can come with the cost of renting a truck, moving supplies, and possibly taking time off of work.
Home updates or repairs -- From replacing carpet to painting walls, you might need to spend some money on your new home just before or just after moving in.
Emergency savings -- Illness, job changes, car repairs, or family emergencies can all pop up unexpectedly.
Life events -- A new baby, an aging parent, or a health event could bring on new financial needs quite quickly.
While it's smart to make as sizable of a downpayment as is possible, it's also very reasonable to keep a decent sized financial cushion in place for life's unpredictability.
If you're able to make a larger downpayment, that's great -- but don't feel pressure to maximize it at the expense of your financial flexibility. Having a slightly higher mortgage payment might be worth it if it means knowing that you have funds set aside for life's unexpected twists and turns.
We'll want to work with your lender to identify the best balance -- one that allows you to buy the home you want and still be comfortable knowing you're financially prepared for what comes next.
