Downpayment: 15% down + PMI or 20%?

[Kevin Coggins]

Which would you prefer?

On a 100k purchase...

Option 1: 15% down + $41/mo PMI

Options 2: 20% down

The numbers would work either way. But on one hand, I' paying more interest/less principal and also getting a $41 charge, which is going to reduce my cashflow.

Alternatively, if I put down 20% I will have better cash flows, but I now have 5% less to put down on a downpayment (which could be 33% of a downpayment).

I'm thinking I want to go the 15% down route, especially considering my money to put down is limited, the 15% would allow me to get more deals going quicker. Just wanted to see others opinions/views on this.

[CJ Ashton]

Just on a raw numbers basis, I would go with the 20% down to avoid the PMI. The PMI is lost money that you'll never get back. In theory, you'll eventually get back all of your down payment at sale or through refinance.