Will be buying my first house in the next few years

[Anonymous]

I plan on buying my first house with my fiance (will be my wife at the time) in the next 1-2 years.

Saved roughly $30K already and plan on having at least $50K-$60K at the time of purchase.

Our price range is going to be somewhere around $190K.

We will have enough to cover a 20% downpayment and closing costs, but then our savings would be cut to probably $2-3K.

I worry a little obviously because a mortgage is a big commitment and it makes me feel a whole lot better having more money in the bank.

I know paying less than 20% would result in us having to pay mortgage insurance but do you think it would be worth it?

Trying to think if it would be worth actually paying something like a 10% downpayment instead, paying the extra cash for the insurance but at least having more in the bank for security?

What did you do when buying your first home?

[bdhu2001]

Pay the 20% if you have it.  It's never a good idea to pay for insurance you don't need.  PMI is approximately $110 per month on a $190K mortgage. If you can afford that and a higher mortgage payment, then you can calculate the difference and save up that amount per month.

By doing this you'd be increasing your comfort level with your savings and not at risk of losing house if something comes up and money is tight (i.e. higher mortgage and PMI comes to $150-$200).  Save the $200 per month for the first year and you'll have an additional $2400.  Also you stated that you'd have $50K to $60K.  20% would only be 38K. You'd still have 10K if you only have $50K saved.  

Negotiate with the seller for them to pay closing. If closing is 5K that's only 5K added to your loan, but it's an extra 5K in cash that you'd have to come up with. Make it part of offer.  Offer is $170 & seller pays closing, etc.

[Caldric]

Never mind