[quote=sdduuuude]
PMI is going to cost $4K per year on a 800K house at 10% down. Putting another 80K down saves you 4K per year in after-tax expenditures.
That’s 5% AFTER TAX on the 80K. Who’s making that these days ?[/quote]
These days, protection of principal is more important than making profit.
There’s a real chance that the OP will have to walk away a few years down the road. Increasing the downpayment from 80K to 160K would expose him to higher potential loss. You save 4K/year (less interest actually earned on the down payment), but you risk losing the 80K principal if things don’t work out.
I was in a similar situation a month ago, I ended up having to put 15% down with PMI, even though I had resources to do 20% or more. In a declining market, every extra dollar down is a dollar potentially lost.
