Not necessarily. I spent $280k on my house and when I did the math with my mortgage broker, it was cheaper for me to do a split mortgage (80/15/5 ratio) than PMI. I put $14k down, have one mortgage for $224k and a second mortgage $42k. It works out to $2,059.72 a month instead of a single 95% mortgage that was going to cost me ~$2,300 a month including PMI. That's also assuming that you're let out of PMI on time. When you do get your mortgage principal down to 80% of your purchase price, you can petition your mortgage company to drop the PMI, but they're not obligated to do so if you have any blemishes in your payment history.

That's exactly what I did. Too lazy to 'splain it. Thanks for doing so.

Well thanks for the info everybody but I decided not to do it because of my supervisor.

He said a very important thing to me, "If you have question then your not ready to buy a house yet"

So I thought about it and he is correct.

You should always question buying a house. For most people it's the most expensive purchase they will ever make. You may think you've made a decision, but it will be in the back of your head until you pull the trigger even if it's a few years away.

As long as you do it right, then you're all set. My wife and I moved into our first apartment and decided that if we were going to blow money on rent, we should save just as much. Every month we would pay our $940 rent and put $1k into our Emigrant Direct savings account. This did two things: 1) Proved that we could afford our mortgage and 2) provide us cash for when we did buy our house. We put $14k down and then still have about $5k to play with. We've gone through most of that now and we're glad we did it.