down payment is applied to the purchase price and is usually not
financed. The amount of down payment you use, will reduce the
amount you need to borrow. So, the more cash you put down, the
smaller the loan amount. Ultimately, the smaller the amount of
your mortgage payments.
if you have 20% or more to put down, this will eliminate
having to pay Private Mortgage Insurance (PMI). This could save
you thousands over the term of the loan and keep your monthly
mortgage payments down even more.