Waiting to Save 20% Down? You Might Be Saving Your Way Right Out of the Market

by James Acierno

Hey there, it’s James Acierno—your friendly neighborhood real estate guy here in Suffolk County. If you’ve been scrolling Zillow late at night with a calculator in one hand and a bag of stress snacks in the other, wondering how on earth you’ll save 20% for a down payment before the market prices you out completely… this one’s for you.

Let’s talk about the mythical 20% down payment. It’s kind of like Bigfoot: legendary, widely talked about, but not something most people have actually seen. Especially here on Long Island, where home prices continue to do that fun little thing where they climb like a kid on a jungle gym—fast, unpredictable, and a little scary.

Here’s the deal: while it’s ideal to have 20% down, it’s not always realistic—and in some cases, it might actually cost you more in the long run to wait and save than to buy with less and pay a little PMI.

What’s the Deal with 20% Anyway?

Let’s break it down. When people talk about putting 20% down, it’s usually because:

It helps avoid PMI (Private Mortgage Insurance), which adds a little extra to your monthly payment.
It lowers your loan balance, which can mean lower payments.
It makes you look more appealing to lenders.

All good stuff, right? Sure. But here’s the kicker: while you’re hustling to hit that 20% mark, the price of homes isn’t sitting still. It’s doing push-ups. Every year you wait could mean the same house will cost you tens of thousands more—and your 20% target just moved again.

Real Numbers, Real Talk

Let’s say today there’s a home in Suffolk County listed at $600,000 (which, honestly, is kind of middle-of-the-road around here these days).

20% of that is $120,000.
If prices increase just 5% next year (which is conservative based on recent trends), that same house could cost $630,000.
Now your 20% target is $126,000.
Meanwhile, if you’re saving $1,000/month, you just gained $12,000… but the house gained $30,000.

You see the problem, right? You’re trying to catch a moving train—and that train doesn’t care that you started making your own cold brew instead of going to Starbucks.

Enter: PMI, The Misunderstood Middleman

Let’s talk about PMI. It’s often treated like a four-letter word in real estate circles, but it’s not evil—it’s just misunderstood. PMI is essentially insurance that protects the lender if you put down less than 20%. In return, you get to buy the home now instead of waiting until your toddler is in high school.

PMI usually adds somewhere between $100 to $300 a month to your mortgage payment (depending on loan amount, credit score, etc.). And here's the good news: it’s not forever.

Most lenders allow you to remove PMI once you hit 20% equity in your home—either by paying down the mortgage or by your home appreciating in value (which, as we just discussed, Suffolk County homes tend to do pretty reliably).

Why Buying Now Can Be a Power Move

When you buy now—even if you have just 5%, 10%, or 15% down—you lock in your purchase price and your monthly principal and interest payments. These two things stay the same, even as your neighbors’ home values continue to climb.

So while your friend who’s still “saving up 20%” watches home prices keep going up, you’re sitting in your new living room, building equity while they’re building anxiety.

And if home values jump 5-10% in the next year or two (again, not unlikely), you might actually hit 20% equity without lifting a finger—just by owning at the right time.

That’s how PMI turns from “extra cost” into “temporary tool.” It’s the bridge that gets you from “Can we even do this?” to “We totally did this.”

For Growing Families, Timing is Everything

If you’re a family needing more space—maybe the kids are suddenly sharing a bedroom that smells like gym socks and fruit snacks—it’s especially important to move at the right time. Waiting for a bigger down payment while your needs are already changing can make for a stressful year (or three).

Yes, interest rates fluctuate. Yes, home prices rise and fall. But your family’s quality of life? That’s not something you want to put on pause if the market already makes sense for you to make a move.

So... What’s the Best Move?

If you're stuck in that “should I wait or should I buy?” loop, here's my honest advice:

Don’t get trapped in the 20% down myth. It's a great goal, but it’s not the only way.
Crunch the real numbers. Sometimes paying PMI for a couple of years still ends up costing less than waiting.
Talk to a local expert (hi, that’s me) who knows the Suffolk County market inside and out and can help you weigh the pros and cons for your situation.

Let’s Chat—No Sales Pitch, Just Strategy

If you’re even thinking about buying, upgrading, or making a move—especially in the next 6 to 12 months—it’s time we talked. I’ll help you lay out a clear plan, review your options, and give you a realistic idea of what’s possible now instead of waiting for a someday that might cost more than you think.

There’s no pressure. No jargon. No 45-minute PowerPoint presentations (unless you’re into that, in which case I’ll wear a tie and everything). Just a straight-up, real conversation to help you get clarity.

📞 Call or text me directly at 631-682-4900,
📩 Or shoot me an email at james@jamesacierno.com.