<prompt> Human: My husband and I got married this past summer, and have been thinking about getting a house. Weve lived together for five years in a duplex in a location we really like, but its starting to feel cramped and we need more space. We arent planning on having kids or anything, just for ourselves. So we have a chunk of money from our wedding that could be 3-5 down on a house we would leave some for closing costs and know our price range. We have looked at 7 or 8 homes and all of them have been totally wrong except this one that seems perfect. The thing in our neighborhood is its high demand, but the houses are extremely old.. you either get nice house top of our price range, or disgusting house top of the price range, or disgusting house bottom price range. One house we saw is in a great location, has features that are good for what we need, and is actually sort of modern with updated windows and roof. We plan to stay a long time.So we want to put in an offer but its also scary. If we do this it will probably cost 500 more than what we pay in rent each month.. we can do it but we will not have much room for saving. We have student loans, car payments, etc. Our jobs are very stable so no worries there.I guess all this really just leads to my question.. should we buy a house with a low down payment, pay the PMI and a higher payment until we hit that 20? Or should we save for a year or two and hope interest stays the same or goes down? My dads friend does mortgages and said that at the moment interest rates are going up and if we wait a while the extra interest we paid might be more than what pmi costs in a month.Thanks to anyone who takes the time to read or listen to this..  <response>: Dont try to predict interest rates. Save up to put down 20 to avoid PMI. 