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Leave a cash cushion after your down payment

A smaller mortgage payment is valuable, but so is money available after closing. In his October 2, 2026 Short, Eric asks buyers to compare putting every available dollar down with keeping a usable savings cushion.

By Eric Hamilton · Published October 6, 2026

Originally uploaded October 2, 2026 · 1:02 · Watch on YouTube

Written companion added October 6, 2026. Adapted from Eric’s video captions with source checks; not a word for word transcript. The recording retains its original date.

Think beyond the closing date

The recording describes buyers who put years of savings, or all the proceeds from a previous home, into their next down payment. Eric asks what their situation could look like six or twelve months later. Consider foreseeable repairs, a move, an income change and emergency expenses before choosing how much cash to commit. Closing costs also need their own place in the budget.

Put an actual price on keeping cash

The clip suggests roughly $63 more per month for every $10,000 borrowed. That is an illustration, not a universal rule: the payment depends on the interest rate and repayment term, and a different down payment can affect mortgage insurance and pricing. Ask for estimates using your actual loan options. Compare the payment increase, longer-term interest and cash left over. Keeping money in savings by borrowing more has a cost; using all your cash to lower that cost may leave you vulnerable to an unexpected bill.

How much should I keep after closing?

Set a reserve around your household expenses, income stability and upcoming needs. Choose a down payment only after accounting for that reserve and your other purchase costs.

Sources and scope

Adapted from available captions of the October 2, 2026 Short. The caption file ends mid-sentence; this article does not reconstruct the missing ending.

  1. CFPB: Determine your down payment Accessed October 6, 2026

General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.

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