Do I really benefit by buying a home now with mortgage insurance instead of waiting to save for a larger down payment?
Yes, for several reasons. A low-down-payment loan lets you put your money to work now instead of “losing” money by paying rent. You can begin to build equity in a home that is likely to increase over time. Second, because mortgage interest is tax deductible, a low down payment mortgage loan increases your income tax deductions. Finally, as home values continue to rise, the home of your dreams may be even further out of reach by the time you save a large down payment.
