<prompt> Human: Hello rpersonalfinance,Thank you in advance for any advice! Heres my situation, bullet-pointed: My wife and I purchased a starter home to tide us over while shes in school for three years. We intend to move in three years, either out of state, or to a bigger home. Between my wife and me, were saving around 2000 more than were spending each month; thisll be true for the next three years while we have our starter home.My question is should we:1. Put as much money as possible towards our starter home, paying off about half of it by the end of the three years. Or,2. Pay minimum payments on the starter home. Accrue some savings and save up for a down payment on a bigger, future home. Do banks take into account your current assets e.g. the starter home when assessing your value as a potential loan recipient, or do they only look at your down payment cash assets? Im just worried that if we do plan 1 and put most of our money towards paying off the starter home, in three years if we havent yet sold the starter home before needing a loan the bank will say sorry, looks like you dont have a big enough down-payment.Thoughts?Thanks again!Assistant: Whats the interest rate on your current loan?Will you need to sell your current house for the down payment for the next house i.e. have a seller contingency on your offer for the next place?How much ballpark will your next place cost?Human: Thanks for the reply. We are currently paying 4.25 interest on our current home. If we were to save now, and pay minimal payments on our current home, well have no trouble having the down payment for the next home a home maybe on the order of 250,000?.My big concern was with interest, I suppose. I see the amount accruing each month on my current home, and felt like I should just throw whatever I could at it to make it go away. It sounds, though, like the more correct answer is to have cash on hand to purchase the new home.  <response>: Dear god dont get a bigger home. Try to build some financial stability first . 