Pros and Cons: Small Down Payment and LMPI
Hi,
I am a little over a month away from closing on a home (new construction). The house is a "detached condo" so I know that the interest rate may be a little higher because its considered a condo and not a SFR. Original intention was to put down 20% to avoid the PMI. In speaking with a friend he suggested to consider putting only 10% down and doing lender paid MI. The interest rate will be higher with the LMPI but the interest can be written off. I can then keep my capital for an investment property. It sounds like a decent option but I'm not sure about the pros and cons and looking for insights on this subject. Look forward to the responses.