The cost of PMI today may be less than the cost of a higher rate and price tomorrow.
Nobody likes the idea of paying PMI or Private Mortgage Insurance on top of their regular monthly housing payment. Yet trying to save a full 20% down payment can take time. In fact, if prices are rising at a typical historical pace of approximately 5%, it can become ever harder to save quickly enough to keep up with what also becomes a higher down payment.
Add to the rising price challenge the possibility of higher interest rates, and what starts out as a good idea can quickly end up costing you more each month later on than a payment might be today.
Simply move the slide control below to show the amount of cash you can put away each month, and you'll quickly see both how long it may take to save and what a future payment may be.
You can adjust the sales price to reflect what you're interested in along with the other important factors such as the rate of appreciation and interest rates, tax and insurance factors, etc.
