DX–I read your statement the same way. It reads as a very strong statement of principle–
“I still stand firmly behind the principle that if you can’t afford 20%, you can’t afford the home.”
when in fact, the latter part of the statement isn’t even true. To save that much, you essentially have to make a house payment to yourself for years, while also paying rent, now demonstrating that you can afford a HIGHER payment, i.e. a bigger mortgage, than you saved 20% for.
That’s how I feel about it–I won’t really have 20% down by the time we would likely want to buy, but we’d probably be relatively close. The PMI is only about $75-100 per month, which isn’t terrible, and by the time my income jumps (as expected), it’ll be no problem.
How do you get rid of PMI? Refinance? Can you put a clause in the loan terms that say the PMI goes away after X happens?