Check out this article from Yahoo! on home mortgages and 20% down payments from Michelle Stoffel Hoffman.
As noted in the article, sometimes doing the math helps figure out how close a buyer can be to financing their first home. In some instances, it may work out in the buyer’s favor to work out a mortgage now, instead of waiting later when rates rise above 4% interest, even with private mortgage insurance.
Don’t forget to figure in principle, interest, taxes and home owner’s insurance plus private mortgage insurance into your final calculations, plus the cost of home ownership such as maintenance and repairs.
I’ve got a great mortgage guy who will sit down with you and answer all your questions, no strings attached, when you’re ready to get some straight answers.