<prompt> Human: I am buying a house and weighing my financing options - please do not recommend that I NOT buy the house as that decision has been made already.Details:Home Price: 340,000Liquid Assets to my name: 75,00020 Down Payment Closing Costs Prepaids: 73,000 - 500.Putting 20 down would suck up nearly all of my liquid assets including my emergency fund. My job is stable and I am leaning towards doing this anyway, despite the erasure of my emergency fund because of the following:1 As stated previously, my job is stable.2 In the worst-case scenario where I would suddenly need a lot of cash, I could take out a HELOC against the 20 I own.3 I dont know the formula for how to calculate PMI charges, but at 15 down from a fees worksheet disclosed by my Credit Union, it appears to be about the same as a 14 point interest rate increase on the payment. This money could be used to rebuild my emergency fund.However, the other part of me says:1 My understanding is that on a conventional loan, PMI is knocked off automatically when I reach 20-22 equity, depending on the lender. Why risk having to go further into debt for an emergency when you can just make an additional principal payment sometime later when you are flush with money and get PMI knocked off at a better time. Alternatively, if the house improves in value in the short term, I could get the property re-appraised and get PMI knocked off in that fashion.What are your collective thoughts? EDIT: formatting  <response>: A HELOC isnt as readily available as it used to be. In fact if you only have 20 equity you wont really be able to get much of one, if you can even find a lender that would give one at all. No one lends 100 nowadays. There are also seasoning requirements, so you would still be sitting a year before you could even potentially apply. It varies by lender but I think you might be assuming HELOCs are always approved, when really I would be surprised if you could get one in the first few years in your home.The down payment also factors into your interest rate. So if you are going with a lower down payment you are facing a higher interest rate for the life of the loan. Might only be an 18th of a percent, but over 30 years thats a lot of money.If you dont have other reserves, you also likely wont get approved for the 20 down plan, or will face stiff consequences in the terms of the loan due to you being a high risk. Lenders are smart enough nowadays to know that things happen and if you cant weather an emergency like a major repair or loss of employment they wont readily lend to you.EDIT: By reserves, that does include things like a retirement account. Just didnt want the last part to seem like you wouldnt be able to get one, just would need additional reserves beyond immediately liquid. 