When is it okay to purchase a house without making a 20% down
payment?
-Hannah
Dear Hannah,
When you’re willing to pay private mortgage insurance (PMI).
And that’s
not something you want to do.
PMI costs about $75 a month per $100,000 borrowed. So, if you borrow $200,000 on a home, and you don’t put down at least 20% on the transaction, you’ll have to pay out an extra $150 a month as part of your mortgage payment.
-Hannah
Dear Hannah,
When you’re willing to pay private mortgage insurance (PMI).
And that’s
not something you want to do.PMI costs about $75 a month per $100,000 borrowed. So, if you borrow $200,000 on a home, and you don’t put down at least 20% on the transaction, you’ll have to pay out an extra $150 a month as part of your mortgage payment.
Read more: http://www.foxbusiness.com/personal-finance/2013/08/06/cant-afford-20-down-payment-can-still-buy-home/#ixzz2bEGkKsaW
