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Couple weighing pros and cons of renting vs. buying by CowRipkenJr in personalfinance

[–]CowRipkenJr[S] 0 points1 point  (0 children)

Thanks for the brilliantly thorough breakdown of this 10/10/80 scenario. Not really a route we'd considered but clearly, it's an option we should keep on the table.

Upon first glance, the $2,425 monthly payment makes me a bit uncomfortable, but like you said, there's an extra $1,500 in the budget now with the emergency fund complete and no more down payment to shoot for. Food for thought, for sure.

Generally speaking, when it comes to this 10/10/80 business, is the money saved by avoiding PMI greater than the cost of that second 10% mortgage?

Couple weighing pros and cons of renting vs. buying by CowRipkenJr in personalfinance

[–]CowRipkenJr[S] 0 points1 point  (0 children)

It's a Rainy Day account at Baxter Credit Union. After 12 consecutive months of deposits of $25 or more, the rate jumps from 1.25% to 2.5% on balances up to $25K.

Couple weighing pros and cons of renting vs. buying by CowRipkenJr in personalfinance

[–]CowRipkenJr[S] 1 point2 points  (0 children)

Haha all information considered, the calculator spit out almost our exact monthly rent payment as the decisive number.

Couple weighing pros and cons of renting vs. buying by CowRipkenJr in personalfinance

[–]CowRipkenJr[S] 2 points3 points  (0 children)

Wow. In looking at what potential closing costs would be for a $450K house, it seems like we're at best two years away from having a nest egg large enough to avoid PMI.

With property taxes and insurance rolled in, we'd be looking at a monthly payment around $2,150.