Is it better to make a larger down payment or keep more cash and buy points?

It depends on your goals. A larger down payment reduces your loan balance, can eliminate PMI at 20%, and lowers both your payment and lifetime interest, but it ties up cash you cannot easily access. Buying points lowers your rate but only pays off if you keep the loan past the break-even point. Generally, prioritize reaching 20% down to kill PMI first, then keep a healthy emergency fund before spending extra on points. If you are cash-constrained, a smaller down payment plus keeping reserves is safer than being house-poor. Never drain your emergency fund to hit 20%. Compare scenarios side by side with the Home Affordability Calculator at wealthserene.com/tools/home-affordability.