Monthly mortgage insurance affects your house payment. With a less than 20% down payment, the lender will more than likely require the borrower to pay monthly mortgage insurance to ensure against the possibility of defaulting on the mortgage.
By paying something down or walking into the house with some equity will give you more leverage when borrowing funds.
Make sure to check and see what is the minimum credit score required for financing. If you don’t meet the minimum, look into other options you may before you apply for a home loan.
Assets/reserves — In most cases, you’ll need at least two months of PITI saved in the bank to meet the reserve requirement. However make sure to check with your lender for complete details.
One of my properties I bought and had to pay a PMI because I only had to put down 5% or 10% i can't remember which one... I was thinking of paying the amount needed to get the PMI off my monthly payments but, over the long term, it served me better to save that money towards buying another investment property. Once my monthly income is substantial enough, then I can start thinking about paying off mortgages and the like....
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