Investment Accounts Stocks, bonds, and mutual funds accounts are easy to liquidate, but you may want to hold on to any accounts you feel will appreciate in value at a rate higher than your mortgage. When you are buying a new home, your retirement account may allow you to borrow against it. However, you'll have more debt, thus decreasing the amount you can borrow. If you already own a home as a primary residence, you'll probably sell it when purchasing a new home. This is the most obvious source of down payment funds.
Interest is tax deductible.
This means the net interest rate on a mortgage is actually lower than the stated rate. You can take money you would have otherwise spent on a down payment to do other things. It's not always wise to put down the largest down payment you can afford. Many times twenty percent is a good amount to put down, and use your excess cash for other purposes. A mortgage is pretty much the cheapest loan you will ever have.