re: How much home can I afford?

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500k purchase

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He's not looking to buy a half million dollar place here, he's a single guy living in a box right now basically

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MI costs you 100 more a month

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PMI on a $500k house would likely be way more than $100 a month, closer to $175-$200/mo.

Our PMI for our house which had a $261k mortgage after 5% down with excellent credit was $81/mo and that was considered a very low PMI rate. If you only put 5% down on a $500k place, you're talking $150/mo minimum PMI and easily go up to $200 even with good credit.

PMI is literally a total waste of money for you as a the buyer so why pay it if you can afford not to. IF the guy didnt have 100+ grand here it's a different story. Not only that, but he could very well be buying at the housing peak around now any by putting so little down could find himself in a bad equity situation if the housing market corrects some which is also another issue.

also, I'm definitely not a boomer