Having saved $100,000 cash gives you a lot of options

— -- Q: I'm 32 years old and have been patiently holding onto $100,000 for a down payment on a $200,000 house. But seeing stocks fall so much lately, I'm itching to invest $50,000 in stocks. Is it a bad idea to change my plan ?

A: The good news is that you're young and have done a great job saving. That gives you many options.

The bad news? You have many options.

Given your age, level of savings and moderate price of the house you're eyeing, you have many ways to tackle this. Think of it as a multiple choice exam question, where answers A, B and C are all correct. You will need to sit down, compare your options and determine which one is most appropriate for you.

Here are three options:

1. Split your $100,000 savings between the house down payment and a stock portfolio. Even in today's tough credit environment, as long as you have a job and are willing to document your income, $50,000 should be plenty for a down payment on a $200,000 home. Brokers I've spoken to say down payments of 25% are still getting deals done with jittery banks.

Just remember that you'll probably need more than $50,000 to pay other closing costs. There are many associated fees that can add up quickly. You'll probably want at least $55,000 to handle the fees and the down payment.

You could then invest the remainder of your $100,000 in a broadly diversified basket of stocks. Just remember, though, that stocks are risky, as investors are learning now. You'll want to keep at least six months' worth of cash in a high-yield savings account for emergencies.

2. Stick with the original plan. By putting 50% down on your $200,000 home, you're going to have low monthly costs. A back-of-the envelope calculation shows a monthly mortgage payment of $632 if you borrow $100,000 at 6.5%. Having such low overhead could give you piece of mind.

3. Delay the home purchase. If you weren't really sold on owning a home, if you think you might move in five to seven years or if you have a great deal on your rent, you might consider putting off the home purchase. While this wouldn't be my top option, you could shelve your home buying for five to 10 years and invest in a broad basket of stocks instead. If things work out well for you, you might be able to buy a bigger house and have money left over.