Chapter 1: Becoming a homeowner sooner
Her parents, like many people, felt she should hold off until she could save for a larger down payment. But Jocelyn had other ideas.
“I did my homework and knew using mortgage insurance (MI) would allow me to make as low as a 5% down payment,” she explains. “I bought my townhouse for $278,000 and put down $13,900. It would have taken me almost 8 years to save $55,600 for a 20% down payment! As it was, my 5% down payment used up most of my savings.”
Chapter 2: Taking advantage of an equity boost
“Imagine if I had waited 8 years to save for a 20% down payment!” marvels Jocelyn. “I wouldn’t have been able to get my foot in the door of homeownership when I did.”
Chapter 3: Using her profit wisely when buying her next home
Relying on her past experience as a homebuyer, Jocelyn chose to buck that trend and use mortgage insurance as a financial tool again.
She purchased her second home for $537,500, and despite having enough money for a 20% down payment, Jocelyn put down 11%, or $60,000.
“In my last house, I cut myself short by using almost all my savings for my down payment,” Jocelyn explains. “I didn’t want to do that this time around. I knew my new house needed some repairs and updates. Plus, I was purchasing it during the uncertainty of the pandemic, and I wanted to have ready cash in case I lost my job.”
Her decision gave her the financial freedom to remodel her kitchen, buy furniture, pay off 2 credit cards and still have savings left for a rainy day.
Chapter 4: Another equity boost
“I try to educate people about all the tools and resources available to homebuyers,” says Jocelyn. “I tell them, ‘I’m living proof.’ Had I waited those 8 years to save for a 20% down payment, I would have missed out on all this money and the perks of being a homeowner!”