Should you put 20% down on a house just to avoid private mortgage insurance (PMI)?
Not necessarily!
One of the biggest mistakes a homebuyer can make is draining their savings account to reach that 20% down payment.
What happens when the roof leaks, the water heater fails, or you have an unexpected expense?
Sometimes putting less money down, paying mortgage insurance, and keeping cash in reserve is the smarter financial decision.
The key is comparing the actual monthly cost of mortgage insurance against the benefit of keeping your savings.
Buying a home in California? DM me. Let's compare your options before you empty your bank account.
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Russell McDonald | NMLS 290837 | Broker CA DRE 01150730
Wymac Capital Inc | NMLS 18766 | Broker CA DRE 01121628
Real Estate Broker – CA Dept of Real Estate