Updated almost 9 years ago on . Most recent reply
Weighing Out Options - 15% or 20% Down
I've found a lender that is offering the same rates for 15% down or 20% down. At 15% down, we have to pay PMI and the monthly cash flow takes a hit. The COCR improves, but I am curious what everyone thinks. Is it safe to assume most of you would take the 15% down option to keep cash reserves free to pursue other properties? Thanks in advance!!
Most Popular Reply
@Craig Fitzsimmons, yep. I think it's safe to assume that most will want to hang onto as much of their own cash for "the next deal" purposes.
The main reason PMI shouldn't bother you is because of the EXTRA equity you're buying into - because you're a wise Investor who only buys well under-market in the first place, right?
Which means: in 6 months, you'll be able to refi and get ALL your cash back anyway, right?
ie. No more PMI, because its new appraisal will give you at least 25% equity - with no down!...