Should I sell my entire stock portfolio to fund a home purchase?

[autoxer]

I've also been reading about piggyback loans (80/20 and 80/10/10 and so on) which seem very appealing....any thoughts on those?

I'm currently saving up for my first home & trying to figure out when I will be ready to buy. I am going to liquidate my brokerage account to buy, but that is a small portion of my portfolio. I am also saving aggressively in a high yield savings account to build up a downpayment.

Here is an article that explains the cost of private mortgage insurance with different downpayments:
Cost of Private Mortgage Insurance

Compared to the rates of return that can be achieved on relatively low risk investments today, the returns on investing in home equity to avoid unnecessary PMI premiums are considerably higher. Assume, for example, that an individual has a 7.5% fixed, 30-year mortgage on a $200,000 home with a down-payment of 10%. As seen in Table 1, given that the homeowner will remain in the home for the life of the mortgage and considering the current full mortgage interest tax deduction, the pre-tax rate of return needed on cash invested outside of the home is 14.51% before this option is as financially attractive as investing in home equity.

One interesting aspect of PMI is that, when determining the premium to be paid for PMI, the insurer normally does not take into account the true difference in default risk from one mortgagor to another. In most cases, the insured is evaluated simply as being either an acceptable or unacceptable risk. However, beyond being either an acceptable or an unacceptable risk, no consideration is given to the financial stability of the mortgagor. The premium paid for PMI is determined solely by the amount of the mortgage and the size of the down-payment made by the mortgagor. (Its size affects the amount of a potential claim.) Therefore, two insurable mortgagors with equally priced homes and equal down-payments pay the same PMI premium, regardless of the true default risk of one relative to the other. As a result, a mortgagor who is considered a low default risk is subsidizing the PMI premiums of other, higher default risk mortgagors.

[Fern]

I haven't had time to ready everyone's replies here, but i think it's very risky to put one's entire portfolio (liquid asset) into a house (illiquid asset).

What if you have some unexpected expense? It happens all the time.

What's the rush? Give yourself a bit of time.