you only "pay" more interest because you are financing more money, so the comparisons that you read when you did your google search is biased. Equity is created from paying down the principle, improving the property, or appreciation. The money saved from not paying PMI more than offsets any additional interest you would incur from the second loan. Traditionally home appreciation happens at a rate faster than a buyers ability to save. For example if you were saving up for a down payment on a 200k house and after a year of saving the house would likely now be worth at least 210K If you weren't a retarded dick the point of the article that you read would imply that IF you had some money you would be better off putting it down. I am glad that you are able to regurgitate without understanding it one bit.