The next step was to find a house in Pittsburgh. Home prices are higher there, compared to Grand Rapids, Amy noted. She wanted to buy a nicer, more expensive home this time around.
“I found one that was a little bit above my price range at $200,000. But it is in perfect condition, I don’t have to worry about repairs or anything,” Amy said. Plus, coffee shops and restaurants are within walking distance.
As a single person who works long hours, finding a low-maintenance home was important to her. But she also wanted to keep some money in the bank, just in case.
She explained, “I could have used all of the proceeds from the sale of my house as my down payment. But I didn’t want to drain my savings account. I used private mortgage insurance (PMI) again, so I could put less money down. I could have put 10% or $20,000 down, but I opted for a 5% down payment of $10,000 instead. My monthly payment is a little bit higher, but still affordable. Thanks to PMI, I could buy a bigger, better house and still have money in the bank.”