20% Down Payment

In today's volatile mortgage market, some are thinking that it is best to go with the old fashioned way of buying a home. This is by putting 20% down. This avoids mortgage insurance and lowers your payment. The lender bears much less risk on an 80% loan, therefore a lower interest rate is given. With the way things have been lately, I definitely understand the logic behind such a view. However, I do not agree it is a wise choice. If you are very liquid and have the cash, it is no big deal. The reality is that most people are not in this situation! I read a very good article on Yahoo Finance today and I wanted to post the link below. I think this brings up some great points while keeping it short and to the point. Please read and feel free to post any comments you have on the subject.

Here is the link to the article.

http://finance.yahoo.com/loans/article/104047/Skip-the-20-Down-Payment

If this link doesn't work, just copy and paste it into your internet browser.

I hope this helps!

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