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Indeed - but now you are a speculator. There is no guarantee that the value will go up, that you will be able to refinance, that your credit will be any good t
by nemo44x 11y ago
Indeed - but now you are a speculator. There is no guarantee that the value will go up, that you will be able to refinance, that your credit will be any good then, that you will even have a job among a myriad of other things.
I don't believe the typical person should take on that type of incredible risk.
- kbenson 11y agoYou are always a speculator when financing any portion of your house. You can lose your job in either scenario. By holding out until you have 20% down, you are speculating that the housing prices will not drastically increase in that time. > I don't believe the typical person should take on that type of incredible risk. If you can't afford it, you shouldn't do it. I'm talking purely about maximizing value by minimizing amount paid overall. Sometimes you will be better off waiting to get 20%, sometimes you are better off taking advantage of current market conditions. In both cases, there is the the chance that your decision ends up costing more than the other strategy, depending on how the market performs.