I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
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Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.
But a good point, nonetheless.[/quote]
True, true! But also to keep in mind the PMI, albeit not negligible, is only for a few years, while the rate is until you re-fi (assuming fixed rate loan)
