A down payment represents the portion of the home's purchase price you pay upfront rather than borrowing through a mortgage. A larger upfront contribution generally means you need to finance less, while a smaller contribution allows you to preserve more of your savings for other expenses.When considering a down payment with conventional loan financing, buyers should look beyond the amount required to close. They should also consider how their down payment affects the loan-to-value ratio, monthly mortgage payment, and potential mortgage insurance costs.