We are buying a home in CA and we would like to know if there is either any financial benefit or disadvantage to a 15% down payment compared to a 20% down payment in our situation.
We are pre-approved for a 30 year fixed VA mortgage. We could put 20% down, which would get the mortgage payment (including taxes and insurance) down to an amount we can afford each month. Or we could put 15% down, put the remaining 5% in savings, and draw a little off of that each month to help make the mortgage payment.
PMI insurance is not a factor because with a VA loan we will not be required to have it even if we put less than 20% down. We will most likely sell the house in three to five years. Closing costs and agent fees will not be a factor when we sell the house because that will be covered by a relocation package.