Here is an illustration of a single family home bought as an investment, and 4 different possible financing options:
1. 15% down (minimum allowed) < includes monthly PMI
2. 20% down - eliminates PMI
3. 25% down - optimized risk premium
4. 25% down - waive the lender discount points and see a higher interest rate.
This was created on Feb 22, 2022 at 9:30 AM << rates change every day! However, the general relationship between these options will remain intact as the mortgage market fluctuates.