My FI are just starting to look now hopefully we will be able to buy by next May or June.
We spoke to several agents who said if you put less than 10% you don't appear (to the seller) to be serious. Just wondering what all of your experiences were
lilmrs
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Re: What percent did you put down when you bought...
Posted by bird
We actually chose to pay the PMI rather than do the 80/17/3 because the 17 is a VARIABLE RATE- meaning, it's like having a credit card for like 40,000 (depending on the price of the house of course - we'll say the house costs around 250,000 and just like a credit card,you can pay interest only and let the amount you owe get even larger. There is a cap of course on the variable rate and if you are disciplined enough to pay more than the interest only, than go for it. But if you are the typical generation debt person who is still trying to get out of credit card debt and pay off school loans, why do this (same with a HELOC but that's another story). I also read a couple of months ago of a bill that they're trying to pass to make PMI tax deductible.......that would be awesome. Personally, we still found it much better to pay the PMI and then refinance.......30 year fixed was what we chose.......rather than have another loan out for more than 40,000 show upon our credit report.....
We also went for the PMI...two years after close...we are about to get it waived off because the value of our house has increased (the barket just soared here and we did a MAJOR renovation to our kitchen). IMHO, the $160 a month for two years is A LOT cheaper than getting a second loan at variable interest. Also, if you do the math we paid about 4k in PMI...it would have probably taken us less than two years to save that money and use it for a down payment but instead we got to live in our house during that time.
Kristen
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Re: What percent did you put down when you bought...
