[quote=SDEngineer]Truthfully, it’s not that bad – the reserves will be sitting earning interest in CD’s, which by themselves will bring in nearly half of what the MI payment is annually. If we had the full 20%, the 16.5% saved by not putting it in the down payment would pay for the entire thing (and that’s just figuring a 3% rate of return on the CD’s).[/quote]
I am not sure I follow the last sentence – the 16.5% of the purchase price – paying for the entire thing – which thing do you mean? Sorry for being dense.
Iam still debating in my case between FHA with 5% down, and the upfront cost and PMI, vs. conforming (? i.e. under that new limit ~600K)with only 10% down or less…
