re: Is it always best to put 20% down on a house to avoid PMI?

quote:

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just don’t get overextended”. Where is “overextended”? That’s a great question with a host of different answers.

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Excellent observation.

Given his age, I’ll guess that if/when wifey and kiddo come along, this won’t be the “forever” house. So the PMI (which is just throwing money away) may not be a long term detriment. And even if he does hang onto the house longer term, with a reasonable downpayment + appreciation, he may be able to get out if it soon enough anyway.

But as you accurately pointed out, it’s a balancing act. And I would view the PMI as the cost of having access to the cash that he’s not putting down.