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Showerthought: I used to think a 20% down payment was the only way to buy a home
Honestly, I saved for five years in Austin and got nowhere with prices rising. I bought last year with an FHA loan and only 3.5% down, and my payment is totally fine. Has anyone else gone with a low down payment option and been surprised it worked?
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wyatt_chen8615d ago
How much extra are you paying each month for the mortgage insurance? That's the part that always makes me hesitate. It feels like throwing money away, but maybe the math works out if you get into a house sooner. Did you run the numbers on that cost versus waiting to save a full twenty percent?
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evanpalmer15d ago
Wait, you think mortgage insurance is a MONTHLY cost forever? It drops off automatically once you hit 22% equity based on the original value.
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