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 Posted: Fri Jan 23, 2009 11:53 am Post subject: Mortgage insurance or more down payment? |
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Hi, which one is a better option - buying your home with mortgage insurance or wait till the time you save a large amount for your down payment? Would it really be of any help when you have saved 20% worth of down payment?
BarbieAlmeida
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BarbieAlmeida
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| Posted: Fri Jan 23, 2009 2:11 pm Post subject: |
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Well you can kind of have it both ways...once your loan balance is below 80% you can contact your mortgage company and request that the PMI be removed...I have personally been successful in this three times...now is a pretty good time to BUY a home...not so much on selling one. 
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Lori
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| Posted: Fri Jan 23, 2009 5:01 pm Post subject: |
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| With just those two factors, wait until you have 20%. If means you don't have to pay for the extra PMI and you don't have to pay interest on 20% of the home for 15-30 years. Again, given just those 2 factors its a no-brainer. But there are usually many other factors involved (current cost of living, affordability, etc). |
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tcope
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| Posted: Sat Jan 24, 2009 7:11 am Post subject: |
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Yes my friend, you may certainly think of a lower down payment with the hike in tax rates and dipping interest rates. Just make sure that you have enough to bear that down payment worth 20-25%. It would be beneficial- you'd have a major tax-rebate for the payments in connection with your mortgage interest. On the other hand you may spend this money upon other forms of investments.
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anonymous00
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