Re:Home Price to Income Ratio
by mywittyname on Tuesday September 21, 2021 @01:51PM
(#28607653)
In general, I think it's a good tradeoff to pay PMI in order to get into a house earlier, or keep a larger down payment invested. PMI is generally <10% of the total mortgage payment and can be eliminated through appreciation, if one is willing to pay for an appraisal.
I waited in order to save the traditional 20% down payment, and, in hindsight, that was a dumb financial move. Investment returns would have outpaced what I was paying in PMI by 10x each year, and the place appreciated enough in two years that I could have refinanced with no PMI without putting any additional money in.
I waited in order to save the traditional 20% down payment, and, in hindsight, that was a dumb financial move. Investment returns would have outpaced what I was paying in PMI by 10x each year, and the place appreciated enough in two years that I could have refinanced with no PMI without putting any additional money in.