Is it better to put 20 down or pay PMI?

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Is it better to put 20 down or pay PMI?

PMI is designed to protect the lender in case you default on your mortgage, meaning you don’t personally get any benefit from having to pay it. So putting more than 20% down allows you to avoid paying PMI, lowering your overall monthly mortgage costs with no downside. Mar 12, 2021

Can you avoid PMI with 10 down?

Get an 80-10-10 loanOne loan covers 80% of the home price, and the other loan covers a 10% down payment. Combined with your savings for a 10% down payment, this type of loan can help you avoid PMI. Feb 5, 2020

How do you calculate if PMI can be removed?

To estimate the amount your mortgage balance needs to reach to be eligible for PMI cancellation, multiply your original home purchase price by 0.80. Who this affects: Homeowners can use this method once they have achieved 20 percent equity. Oct 25, 2021