Quote:
Originally Posted by bkcunningham1
Requiring 20 percent down on conventional mortgages, like in the old days before loans were given to people who couldn't afford them, gives you automatic equity in your home. In most cases 20 percent down does away with private mortgage insurance requirement on your part. More than that, it gives the lender a head start on recouping their loses in case you default.
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I think the whole world would be in better shape if the 20% rule was in place the last 10 years. There is no reason for people not to walk away from homes. They did not vest any real money.