Test a longer PMI period before relying on appreciation
Buy sooner with PMI or continue saving
Use the actual cash gap between the two down-payment choices and the quoted monthly PMI. First test the expected PMI duration, then extend it without assuming appreciation. Compare the insurance total with retained liquidity and the time needed to save the extra cash; neither output predicts future home prices.
Compare time, retained cash and entered PMI
Use a lender’s PMI estimate.
Enter realistic monthly savings.
Test longer PMI duration and flat home prices.
Read the output as a timing tradeoff
The ratio shows the entered insurance cost against cash retained; it is not a buy-versus-wait forecast.
PMI, Down Payments and the Break-Even Question covers the controlling document terms and questions outside this result.
Use the lender's actual insurance estimate
- The lender's written monthly PMI estimate
- Cash needed to reach the alternative down payment
- A realistic monthly saving amount
- The lender or servicer's PMI cancellation conditions
What this PMI comparison deliberately excludes
- Appreciation
- Investment return
- Rate or home-price changes while waiting
The buy-now-or-save decision
Compare the time needed to save more cash with entered PMI cost.