<prompt> Human: Right now I am looking at a house thats 220k in Texas near Dallas. I have the money to put down 20 plus closing cost but after doing some number crunching, if I put down 10-12 the monthly payment isnt going to be that different compared to putting 20 down, and the PMI would only be about 70 monthly. Now I know that putting more down will save me more the long run, However this is a 30 year mortgage that I intent on paying off in 10 years we have 2 income totaling well over 100k and the COL where I am is fairly low. Would it be worth paying the PMI for the time being to have the extra 22k on hand?  <response>: Paying the PMI for the sake of liquidity will cost you 70 per month, or about 840year, in order to save 22K. Thats an effective APR of about 4 just for PMI; if you add your mortgage interest rate which is likely around 4, its an aggregated effective APR of about 8 for the first few years until PMI drops off and 4 afterward.I would advise against this. Most people wouldnt borrow 22K at 8 if they could avoid it, though thats essentially what youre doing. 