Any dividends from the stock have been reinvested. I've asked friends and relatives who are accountants, real estate agents, and mortgage brokers for their advice about cashing in the stock for a nice down payment. I can't seem to get a clear answer from any of them. This amounts to 20 percent, if you're in the 28-percent bracket or above, or 10 percent is you're in a lower tax bracket. The most conventional way to go is to sell your stock to pay for your down payment.
Many people do that.
On the other hand, since you've managed to accumulate a substantial holding there, and you appear to be a very good saver, you may want to consider a few alternatives. First, there are some financial institutions, like Fidelity Investments and Merrill Lynch, that offer home-buying programs for their customers. This is a somewhat risky venture, since you're essentially buying the house on margin. That means, you're using the value of the stock as collateral for that portion of the loan. Should the value of the stock go down, you may be subject to a margin call.