The sale of her townhouse allowed Jocelyn to move up to a much larger house in a gated community in Simi Valley, CA. Typically, when buyers like Jocelyn move up, they have enough equity or profit from the sale of their previous home to put down 20%.
Relying on her experience as a loan processor and mortgage insurance employee, Jocelyn chose to buck that trend and use mortgage insurance as a financial tool again.
She purchased her second home this spring 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.