[xivzgrev]

PMI IS a waste of money, but it's relatively negligible. if it helps you get your house years earlier, that could easily be worth it, not only financially but also happiness (if owning is emotionally important).

i paid 5% down on my house and my PMI is only 4% of my all in monthly payment (mortgage, PMI, prop tax, insurance). if i had to wait until i had saved 20% i'd probably still be saving & renting. instead i've already paid down another 5% of my mortgage plus getting the interest tax breaks each year.

[monkmartinez]

The mortgage itself is a waste of money if you don't pay if off early. I wish people understood this better. There is almost no situation where owning a home makes sense if you don't pay it off before the term and we aren't in some wacky pandemic or financial bubble.

[brahbrah]

Would you pay it off early if you have a 2.5% interest rate and could get a guaranteed 5+% on a CD?

[polka_haunts_us]

I'm in this situation with my car right now, I have the money to pay it off but why bother when I can make the monthly payment with savings account interest.

[monkmartinez]

Depends... It would depend on the price to service the mortgage. I would do a quick model to see the timeline to "break even" on paying in full verses the total amount of interest paid to service the loan for duration of the term.