re: What's the deal with PMI these days when purchasing a new home?

quote:

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For some reason this 20% rule of thumb has never changed. The cost of borrowing money should play a factor in determining whether or not you can "afford" a home.

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Another good point I hadn't considered.

Back then (50s-80s) I don't think interest rates fluctuated with the magnitude and frequency that they do today (relatively speaking that is....and I could be completely wrong), so that may have played a part in the development of this rule of thumb.

Sorry for coming across as telling you you "can't afford it". I guess I was just echoing my father. That being said, consider all of the costs associated with both, develop a long-term cash-flow model, and you should be able to determine which is the smarted decision from a STRICTLY FINANCIAL standpoint.

Factor in emotions, and determine what to do from there.

Good luck!