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We are looking at a "first home", and to probably be our "forever home" to "age in place" here in the NE USA.
We had a figure in mind that turns out to be 18.4389% down.
I asked the finance guy to work up the numbers based on a round 15% down, as we can't quite push it to a full 20% like I'd like to; and leave room for the extra moving expenses, and the immediate physical changes we'd like to/have to make to the house {IF a deal ever comes out of it}.
Some is our saved money and some is a "gift for anything you'd like"- as in house, car, retirement from a parent.
Mine was 10% but the seller held the paper with a 5 yr balloon. Interest rates were about 14% so I refinanced at 4th yr when rates had dropped.
Today I would suggest to never put down less than 20%. When PMI is required (usually when the buyer puts down less than 20%), that is just money down the drain.
Last edited by luv4horses; 09-05-2015 at 06:47 AM..
Nothing kind of. It was a lease purchase so landlord had our 5% plus paid all closing costs. We are paying $400 less than the rent amount even with PMI. (Area Cheaper to buy than rent) We used savings to upgrade home.
2012, Financial Analyst, bought with 5% down. I had the cash to do more but decided I had stronger options for using that cash to increase net worth. The interest was low enough that even the effect of adding PMI was not strong enough to offset the benefit of paying off my wife's student loan debt. She got those loans during the years when the rate on student debt had been jacked up.
PS. Yes, I ran the cash flow calculations through a traditional time value of money analysis. Next year planning to pay the mortgage down and cancel the PMI.
Never put more than 10% down on any home (first home purchase in 2001) and had a couple we put zero down on.
Never had PMI on any purchase, but did opt to pay a point once.
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