Money Down on House vs Keeping PMI vs Keeping more $$ Saved Help!!

[navisavi]

Hello All,

Here is my situation, any advice is greatly appreciated.

I am currently building a house. I am in a dilemma as to what I should do for the following:

I have about 75k in savings.

If I put down 10% (30k) on my house my monthly payment is going to be $1890.00 (includes $128 Mortgage Insurance each month)

If I put down 20% (60k) on my house my monthly payent is going to be $1625.00 (no mortgage insurance needed).

I plan on living in the house 5-10 years.

My question is does it make sense to put down another 30k of my savings for only a difference of $275.00 a month if I only plan on living there 5-10 years. I hate to just piss money away by having Mortage insurance. But the way I see it if I only put down 10% (30k) that leaves me another 30k in emergency money/savings God forbid I were to lose my job I could go a whole year making my mortage on just savings alone. I could also invest that money. The reality is I will not hit much principle in those first 10 years so will the 300 monthly payment difference really matter?

Also to know I am getting married next year and have to pay for entire wedding myself--Looking at 15k in wedding.

Thus if I were to put down the 60k (20%) and pay my wedding 15k, that depletes my savings/security net I have.

What do you all suggest?

Thanks,

[disneysteve]

Welcome. Not enough info. How much do you earn? What will your monthly expenses be once you have the house? How much do you think you going to be able to add to your savings each month once you purchase the house? What is the interest rate on the mortgage?

I believe the following:
You should not put down less than 20% when buying a home.
You should maintain at least a 6-month emergency fund.

[QUOTE But the way I see it if I only put down 10% (30k) that leaves me another 30k in emergency money/savings God forbid I were to lose my job I could go a whole year making my mortage on just savings alone. I could also invest that money.[/QUOTE]
You don't invest your emergency savings. You keep it in safe things like money market accounts and CDs. But you need to answer my earlier questions for us to know how much of an EF you actually need to have.

[navisavi]

Welcome. Not enough info. How much do you earn? What will your monthly expenses be once you have the house? How much do you think you going to be able to add to your savings each month once you purchase the house? What is the interest rate on the mortgage?

I believe the following:
You should not put down less than 20% when buying a home.
You should maintain at least a 6-month emergency fund.

[QUOTE But the way I see it if I only put down 10% (30k) that leaves me another 30k in emergency money/savings God forbid I were to lose my job I could go a whole year making my mortage on just savings alone. I could also invest that money.

You don't invest your emergency savings. You keep it in safe things like money market accounts and CDs. But you need to answer my earlier questions for us to know how much of an EF you actually need to have.[/QUOTE]

Thank you for taking the time to respond. I am in my mid 20's and in sales (so risk is good years vs bad which is why I'm apprehensive to put down 20%). This is the first time in my career to break 6 figures and I am on pace to make over 200k. I have paid off all of my credit card debt, my credit is great/DTI is solid (I have 20k in student loans which I pay monthly, no credit card debt, and a car loan for just over 20k)--mortgage rate is 30 yr fixed at 4.375%. My total Monthly expenses NOT including mortgage is around 900 a month. My Fiance makes 50k a year.

[Seeker]

If you are on track to make 200k this year; can we assume 50k this last quarter of the year?

How much money do you have after "monthly income - monthly expenses - monthly debt payments"? That determines how much money you may save each month... which determines how quickly you can replenish your savings.

You're panicing at a major outlay.... but 20% is the normal down payment. Why panic when you've said that you are on track to make 200k this year?

Do you really want all of what you are doing? Or is it too many changes at once?