If you're going to invest in mutual funds or pay an adviser 2% or so then you'd probably be best putting it in a home purchase. If you're already heavily invested in mutual funds and savings accounts that can't even keep up with inflation then giving up $2,000 - $3,000 more right away per year to someone else to manage the money for you then you're likely much better off putting the equity in the home and saving on mortgage payments. If you think you can earn more than the 2.5% mortgage rate consistently over the long-term then by all means invest, but you won't get that in savings accounts or most mutual funds.