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People go where the jobs are. They are going to live wherever employers "insist on" locating their offices. 20% down payment isn't a myth; if you don't put 20%
by kyllo 6y ago
People go where the jobs are. They are going to live wherever employers "insist on" locating their offices.
20% down payment isn't a myth; if you don't put 20% down (and don't have some special situation like a VA loan) you have to pay for private mortgage insurance which can be hundreds per month, as you're buying the lender insurance against the possibility of you defaulting on your loan.
- SamuelAdams 6y agoDepending on your situation, PMI may be worth it. For example I was paying 1200 a month for a 1 br apartment. They wanted to up it to 1500 a month. Instead I bought a house with 5% down. The total monthly payment for a 200k house, including PMI, is 1,100 a month. Even with PMI I am still paying less than living in the same apartment year over year.
- asdff 6y ago5% down is typical in high cost cities
- lallysingh 6y agoPMI is reasonable. I put down 5% on my first home, (<$20k) and commuted via train. Just get a cell modem and do your morning work rituals (email, news, etc) on the train. I sold that house 3 years later at 13.5% appreciation, with good equity on top. I used all of that towards the down payment on house #2. Commute in from a small investment home/condo to let equity + appreciation get you into the home you want a few years down the road. Even in my starter, I got twice the sqft for the same monthly as my not-very-close apt.