re: How screwed am I by not putting down 20% on a home purchase?

quote:

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I'm purchasing a home right now and I'm using lender paid MI

Basically, I'm taking a hit on the interest rate but I won't have to pay any PMI

The only way this come away more expensive is if I stay in the house for 30 years, then it might end up costing me an extra 5k or so.

My interest rate is basically 0.5% higher than if I had gone with PMI

My monthly P+I will be higher but the lack of PMI makes my total monthly payment lower.

Things to consider:
This higher rate never goes away, unlike PMI, but there is less cost on the front end of the loan.

Mortgage interest is all tax deductible while PMI is not.

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Did the same thing in April. Paying a bit extra every month on the note now instead of paying PMI. Will REFI to a 15 year in 5-7 years assuming rates stay low and I still have cash in the bank vs blowing it all on a down payment.