When purchasing a home there are options if you have more than the required downpayment. If you are financing less than eighty percent of the price you will not be required to pay mortgage insurance. The amount of savings depends upon type loan. Then again you might want to hold on to the money to improve the home after purchase. Interest payments can be deducted from taxes. On the other hand you will only be paying interest on the principal owed. Having funds available above the required downpayent is a nice place to be. The correct answer depends upon your situation.