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Old 01-15-2017, 08:41 PM   #9186
lowside67
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Quote:
Originally Posted by twitchyzero View Post
someone crunched the numbers on the mtg insurance premium vs interest-free down payment loan

https://colinngblog.wordpress.com/20...f-the-program/
Pretty dumb post. The entire crux of his article is that you should just "save up more money" because mortgage insurance is expensive - thanks bro.

I paid for mortgage insurance and it was not inexpensive, mine was about $10k. On the other hand, the mortgage insurance also allowed me to get in with about $40k less down than if I had put 20% down which equated to about an extra 2.5 years of saving. In that 2.5 years, my place has gone up in value by nearly $100k and I am repaying my mortgage at an accelerated pace allowing me to build equity faster. The $10k "cost" was an excellent investment.

To simply make a blanket statement that "mortgage insurance is bad because it costs money" is the kind of ignorant crap that we need to stop perpetuating. There are people that it makes sense for, and certainly also some that have no business buying a house, insured or otherwise.

Mark
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