Re: How did you come up with your down payment?
My girlfriend and I are both 24 and renting together. We both graduated college last year and each make a decent entry level engineering salary. We recently decided to start saving for a home together. We get paid biweekly and are currently saving $1000 each paycheck, which would amount to $26K in savings for one year.
Our goal is to buy a home for around $300K, so a 20% down payment would amount to about $60K. Since we do not want to spend three years saving for a 20% downpayment + closing costs while wasting our hard earned money on rent, we are probably going to save for 1.5 years (due to our renting lease cycle), which should amount to about $40K in savings. We are counting $10K for closing costs, so we should have about $30K for the downpayment, which would be about 10%.
Our plan for avoiding PMI costs will be to take a piggy back loan for the other 10% on top of the 80% regular mortgage.
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