Ed (Caller)

See, I've been saving for the last year, which I intend to save for the next few years.

I'm just afraid that by the time I have enough saved, interest rates and home prices are just going to continue to increase.

So I got a real estate question.

I am 26, my wife's 26, and we are about to purchase our first home.

Awesome.

We're about to purchase our first home, that is.

And got pre-approved recently, and I'm struggling with understanding what to do here.

So I was quoted for putting 20% down on a home and 15% down on a home.

And on a 15-year fixed, and my rate for 20% down is higher than my rate if I put 15% down.

I agree.

And that's what I'm trying to figure out why that would be and which direction I should go.

Conventional.

That's what I would have thought.

And they said that.

The lender that – so we're – it's a new community being developed, so it's the preferred lender of the builder.

It's not the preferred lender of the buyer.

Yeah, no kidding.

Basically, what she said is that when someone puts 20% down and the bank is no longer charging them PMI, they still view that as a higher risk than if someone put 15% down and they do charge them PMI.

Understood.

Hi.