First Time Home Buyer - Need Advise

[Andrew Russell]

I'm a first time home buyer needing some advice regarding amount of mortgage downpayment based on my particular situation. General advice seems to be to get the longest maximum mortgage possible... like 10% down / 25 years.

My details: Approx $500k in bank account. Monthly after-tax income of about $8.5k. I'm looking at homes in the $500-650k range. 

Say for $650k home, at 20% down, 25 years/3.5% mortgage, I'm looking at $2,600 mortgage payment. That plus all over monthly expenses (supporting my family) takes me to almost $9.5k overall monthly expenses, so more than I'm taking in by about $1k per month. 

I'm feeling much more comfortable to get positive on my monthly in/out, so wouldn't it make much more sense to make a %50 downpayment on the mortgage? 

I guess extreme option is even to buy it in cash, pocket the $2,600 on monthly basis. 

Would love to get all your thoughts! Much appreciated.