Quote:
Originally Posted by JP10
To chime in pertaining to the down payment debate, we didn’t have 20% when we bought in 2021 (first home). We had just gotten married that year, we’re renting the home we now own, and seller offered us first right of refusal so we didn’t have to go to market which was great. Put 5% down. Have to pay PMI, but we will be at 20% paid off by early 2024 because we bought something that we knowingly could afford then we can drop the insurance. Worked great getting in at 3% loan and our home value continued to sky rocket (25% equity as it is now). We are also in an area that is probably a little less susceptible to a crash (20mins to a few beaches and close to downtown CHS which is growing at a crazy rate).
My point is there are scenarios where people just don’t have the money yet - not because they weren’t saving, or because they were making bad financial decisions, life just had other plans and sometimes you roll with the punches. We were essentially forced into make a great financial decision so it worked out for us (luck). Without the allowance for minimum down payment we would be about $60k poorer right now (roughly - $2k/month wasted on rent for 30months). Instead we have over $100k in equity.
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If you have 25% equity, why don’t you apply to remove PMI?