re: What's the most amount of money you'd put down on a new house? It would be a new build.

Because for first time homebuyers, especially in the current market, home prices may very well outpace your ability to save the cash you can save for a down payment.

Paying pmi is such a minuscule cost compared to what you can “lose” by waiting until you have the full 20%.


A big factor in my personal networth has been buying my first house for what I did and selling it a few years later for what I did. I only out 10% down to buy the house. It was in an incredibly desirable neighborhood that was only getting more and more expensive.

If I had waited another year or two to save up the additional 10%, the market would have passed me by and I would have had to buy a less desirable house in a less desirable neighborhood.



Also if you are still paying rent to a landlord because you don’t want to pay pmi, then you might be an idiot.
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Very one-sided argument. You describe market conditions that don't often exist. Good for you on your timing, but I would not casually advise that without knowing more details. Most of the time, keeping your total cost of ownership low is a good thing.

Also, you are assuming the buyer is paying rent while waiting to purchase a home. May not be the case. Even if it is, you don't know their rental situation vs the house market. I had an extended period where I rented after a work related relocation. I was paying less than half of what my mortgage would have been. I invested heavily in stocks during that time and hit a very fortunate run up that earned me triple digit returns. Your opportunity cost of money is always a consideration.

Your last statement is just a cliche. One would be an idiot if they believed that either of our scenarios is the way to go without more specifics.