<prompt> Human: I have been reading every bit of information I can about mortgages, from the different types to knowing how PITI is calculated. However, I am still unsure what happens to the money used for the initial down payment on a mortgage. More specifically, what happens to that money if I move and try to buy a different house elsewhere? Is it lost and do I have to save up for another down payment?Situation: I am currently renting an apartment but I want to own my own place, but I am looking for a house that will also be a long-term investment i.e. rental house for college students if I move. So I am trying to accomplish two things at once. Side Note: I understand that the down payment helps lower the total amount borrowed which also lowers the total mortgage payment. Thanks Reddit!  <response>: That money effectively becomes the equity you have in your house. If you buy a 100K house with a 20 down payment, then your mortgage is only for 80K. If you then have to sell that house right away, you can sell it for 100K, pay off your mortgage, and have 20K left over for a down payment on a new one. This is simplifying and ignoring closing costs, etc. Many home purchases are contingent on the sale of the current home for this reason. 