I'm planning to buy my first house in Texas in the next year and trying to determine how conservative I should be with my down payment. My worst case scenario includes paying out of pocket closing costs and appliances (plus maintaining an emergency fund and paying the initial costs of moving). Since my down payment will be less than 20% and I believe PPI will apply, I'm thinking of just putting 10% down. I'd rather underestimate and make additional payments after a few months - but that only benefits me if pre-payment penalties do not apply to the mortgage. Are they common?
Read more: Are pre-payment penalties common with today's mortgages?
