I am in the process of making an offer for a house. Wife and I have about 135K saved, with steady jobs, both happen to be an 'essential business' as required for this period during the corona virus.
Initially, I wanted to put 20% down (about 74K) to avoid PMI and have lower monthly payments.
I have since reversed course on this. I think 10% (about 37K) is better, and here is my reasoning. PMI calculators online suggest the PMI will be about 150 a month. 37K invested returns should be more than double the yearly PMI payments during an average year. We plan on being in this house for the foreseeable future, so I am playing the long game with this chunk of investment. We can also have the option to make a chunk payment in the future to bring it to 20% equity and get the PMI taken off if we choose. Also, this gives us access to this cash in a more liquid form during these unsure times.
Does this reasoning make sense? With a long term outlook, would it still be wise to sink the extra 37K into the house and get rid of the PMI?