Showerthought: I thought a 20% down payment was a hard rule you couldn't skip.

When my partner and I started looking in Austin, our agent kept pushing us to look at loans with only 3% down. I was sure it was a bad idea that would cost us more later. We ran the numbers and for our $300k budget, the PMI added about $120 a month, but getting in two years earlier saved us from rising prices. Has anyone else gone with a low down payment and been glad they did?

2 comments

2 Comments

averywright12d ago

Oh man, we did the SAME thing. Put down 5% on our place in Denver. That PMI felt like throwing money away, maybe $90 a month. But prices here jumped like 15% the next year. If we had waited to save 20%, we would have been totally priced out of our neighborhood. Sometimes the math works out weird in your favor.

luna_craig5812d ago

Exactly, our PMI was worth every penny.