Portal Forum General General Discussion Home Ownership Reply To: Home Ownership

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gopheritallgopheritall
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@gopherguy06 wrote:

@dxmnkd316 wrote:

I still stand firmly behind the principle that if you can’t afford 20%, you can’t afford the home.

In geneal, I agree, but not always the case. In most cases people who want to purchase a home may not have a ton saved up but can afford a monthly. Your income will increase over time and be able to afford it. Not always the case, but doesn’t always make sense to do 20% down

I would also argue that earning equity in a home beats paying rent, even if you also pay PMI. Even the small amount earned during the initial payments. You get nothing back out of rent.

As I understand it, going forward if your home value increases you can have it assessed and if your equity passes the 20% threshold you can have PMI removed. The 20% is not based on the value at purchase but the current value.