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re: Is it always best to put 20% down on a house to avoid PMI?Posted by Chasin The Tiger 
on 11/19/20 at 3:18 pm to Texas Tea 123
on 11/19/20 at 3:18 pm to Texas Tea 123You do realize that my mortgage payment with principal, interest, pmi, insurance, and taxes was the same amount as if I had rented the same house? And I probably spent less than $1000 in maintenance in the 2 years I owned it.
re: Is it always best to put 20% down on a house to avoid PMI?Posted by 21JumpStreet 
on 11/19/20 at 4:20 pm to pioneerbasketball
on 11/19/20 at 4:20 pm to pioneerbasketballIf you can afford it, yes.
re: Is it always best to put 20% down on a house to avoid PMI?Posted by thelawnwranglers on 11/19/20 at 7:32 pm to jimbeam
on 11/19/20 at 7:32 pm to jimbeamquote:
15k wasn’t it? I done fricked up baw
Yep
re: Is it always best to put 20% down on a house to avoid PMI?Posted by Joshjrn on 11/19/20 at 9:56 pm to Chasin The Tiger
on 11/19/20 at 9:56 pm to Chasin The Tigerquote:
You do realize that my mortgage payment with principal, interest, pmi, insurance, and taxes was the same amount as if I had rented the same house? And I probably spent less than $1000 in maintenance in the 2 years I owned it.
And what percentage of that money would you say went to your principal during those two years?
re: Is it always best to put 20% down on a house to avoid PMI?Posted by Chasin The Tiger on 11/19/20 at 10:17 pm to Joshjrn
on 11/19/20 at 10:17 pm to JoshjrnNot to mention the tax deductions and the home appreciated 80k in 2 years.
re: Is it always best to put 20% down on a house to avoid PMI?Posted by audioaxes1 on 11/19/20 at 11:37 pm to ellesssuuu
quote:
As a person in the mortgage industry don’t put 20% down. Instead of monthly PMI, see if your mortgage person can run a one time single premium MI. It’s a one time charge and you never pay monthly MI.
if you sell before you break even then that would not be the best route
re: Is it always best to put 20% down on a house to avoid PMI?Posted by PropofoLSU on 11/20/20 at 5:45 am to Chasin The Tiger
on 11/20/20 at 5:45 am to Chasin The TigerIf you rented you wouldn’t have paid taxes, home owners insurance, or maintained a home in addition to interest....
You’d have saved about 50k on a 300k home
You’d have saved about 50k on a 300k home
This post was edited on 11/20 at 5:55 am
re: Is it always best to put 20% down on a house to avoid PMI?Posted by Chasin The Tiger on 11/20/20 at 6:20 am to PropofoLSU
on 11/20/20 at 6:20 am to PropofoLSUYou still would've paid all of that in your rent payment. It would've just been going towards your landlords mortgage.
re: Is it always best to put 20% down on a house to avoid PMI?Posted by Decisions on 11/20/20 at 9:33 am to pioneerbasketball
on 11/20/20 at 9:33 am to pioneerbasketballI was not expecting this to be such a heated debate!
It’s pretty simple math, as another poster said, to analyze what your total cost is going to be of putting the extra money down vs. not.
What’s not simple is determining your risk tolerance and how much you could be making off of that money in other investments.
I used to be in the “pay debt off quickly if able, put the 20% down” group. Now I’ve shifted to “let the leverage and debt work for me, just don’t get overextended”. Where is “overextended”? That’s a great question with a host of different answers.
Congrats on being in this situation, regardless. It sounds like you’ve been working hard and have your head in a good place if you’re trying to learn these things so early!
It’s pretty simple math, as another poster said, to analyze what your total cost is going to be of putting the extra money down vs. not.
What’s not simple is determining your risk tolerance and how much you could be making off of that money in other investments.
I used to be in the “pay debt off quickly if able, put the 20% down” group. Now I’ve shifted to “let the leverage and debt work for me, just don’t get overextended”. Where is “overextended”? That’s a great question with a host of different answers.
Congrats on being in this situation, regardless. It sounds like you’ve been working hard and have your head in a good place if you’re trying to learn these things so early!
re: Is it always best to put 20% down on a house to avoid PMI?Posted by Auburn80 
on 11/20/20 at 9:44 am to pioneerbasketball
on 11/20/20 at 9:44 am to pioneerbasketballCongrats on your house. This is one of those situations where it’s risk in the market vs getting rid of PMI. For me, I would get rid of the PMI and reduce my debt. Others will invest. Neither is wrong, it just depends on your mindset.
If you’re able to save 10% of your earnings either way, you are going to be fine long term no matter what you decide.
If you’re able to save 10% of your earnings either way, you are going to be fine long term no matter what you decide.
re: Is it always best to put 20% down on a house to avoid PMI?Posted by Ed Osteen 
on 11/20/20 at 1:09 pm to pioneerbasketball
on 11/20/20 at 1:09 pm to pioneerbasketballquote:
I'm 22 years old
quote:
Member since Oct 2005
Que?
re: Is it always best to put 20% down on a house to avoid PMI?Posted by crazyLSUfan on 11/21/20 at 1:39 am to pioneerbasketball
on 11/21/20 at 1:39 am to pioneerbasketballYou were posting on this site as a 7 year old?!?
ETA: Dammit. See I’m late with this question
ETA: Dammit. See I’m late with this question
This post was edited on 11/21 at 1:42 am
re: Is it always best to put 20% down on a house to avoid PMI?Posted by Jag_Warrior 
on 11/21/20 at 11:08 am to Decisions
on 11/21/20 at 11:08 am to Decisionsquote:
just don’t get overextended”. Where is “overextended”? That’s a great question with a host of different answers.
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.
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