Viewing a single comment thread. View all comments

NoFilterNoLimits t1_iyda1ae wrote

When you put down less than 20%, you pay Private Mortgage Insurance monthly, either for the life of the loan or until you hit an 80/20 ratio on the house value.

Many people try hard to avoid PMI. It is “wasted” money in some sense, but it’s not always a bad choice. PMI cost is impacted heavily by credit score. Mine is $49/month and falls off after like 19 months. It was a very small price to pay to buy sooner & keep more money invested.

Sometimes, PMI could add several hundred dollars a month for years, that changes the calculation.

These questions are generally just math and it’s just a matter of entering numbers to decide what’s financially best at a given time for a specific person & location

5

eyeofthequeentiger OP t1_iydakea wrote

Thank you for your response! I’ve always made it goal to put at least a little above the minimum payment on my credit cards every month (I have 2 & plan to cancel one once it’s fully paid off cause interest rates are increasing)

1

LOLRagezzz t1_iydb2yp wrote

don't cancel that card, just don't use it, especially if its an account you've had open for a long time

6

NoFilterNoLimits t1_iydcot5 wrote

The best thing you can do for your credit is to keep it open, put a small recurring charge on it like Netflix, and set it to auto pay the balance in full every month. You’ll never pay interest and demonstrate responsible credit use.

Just check it monthly to ensure everything is working as intended. Good finances can be largely automated but should never be forgotten or ignored lest you discover a surprise too late

3