It sucks to have to pay PMI…💀

Private mortgage insurance (PMI) is usually needed on conventional loans if you’re not doing at least 20% for the down payment 🏡

This extra fee is to protect the lender in case the homeowner defaults on their loan

This might make it seem like the 20% down would be a better option. 🤷‍♀️

However, if it will take you a long time to save up for that 20% down payment for your first home, you should keep in mind that you may be losing a lot to rent

Also there’s the opportunity cost - could you invest that difference in down payment cost to make you more than what the PMI cost is?

And with conventional loans, your PMI will automatically drop once you have over 20% in equity on the house 🙌

So these are things to consider when you’re deciding between a 20% and a low down payment option for your home!

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