Viewing a single comment thread. View all comments

raustin33 t1_iy9l65s wrote

Reply to comment by RenaldoGarfunkel in Buying a house next year, what’s a reasonable budget for mortgage payment? by ProspectiveHomeBuye

> Then 20% Down on a 15 year loan to avoid PMI

There's a math problem here tho. Simply avoiding PMI could cost them in the long run.

How long will it take to save 20% while spending $2100/mo on rent? vs buying sooner and spending ~$200/mo on PMI?

20% isn't always the right call, though is ideal if you can swing it.

6

xKimmothy t1_iy9wvvm wrote

Agreed. All our relatives were constantly spouting that idea at us, but when I did out the math for them, we'd have to work over 5 years with zero spending over bare necessities to save the 20%. We didn't want our life to look like that for 5 years just to save. We put 5% down and our PMI is 115/mo.

2