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TIL a lot of people think a 10% down payment is the only way to buy a house
In my experience, that rule can lock you out of a good market. I bought my place in Tampa with a 5% down FHA loan three years ago, and my home's value has gone up way more than the PMI I paid. It let me get in before prices jumped again. Has anyone else used a low down payment loan and been glad they did?
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rowan65811d ago
That "got in before prices jumped" line is pure luck, not a plan. You basically bet your whole financial safety net on the market only going up. If prices had dropped even a little, you'd be stuck in that house with no equity and a loan that costs way more than it should. PMI is just throwing money away for years, and a tiny down payment means your monthly payment is way higher from the start. It's a risky shortcut that leaves you with no cushion if life goes wrong.
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uma_taylor4711d ago
Honestly, we did the low down payment thing and just paid extra each month to kill the PMI fast. Tbh it got us into a house we could actually afford instead of waiting forever.
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the_tessa11d ago
Wait, did you just say PMI is throwing money away for years? That math doesn't add up at all. We paid an extra couple hundred a month and got rid of it in under two years. Calling it a risky shortcut ignores how many people simply can't save a full twenty percent. Sometimes getting in the door is the whole point, even if it costs a little extra up front.
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