Private Mortgage Insurance for low down payment loan

Guest

Hi,

An 80-20 mortgage loan can be an option you can select if you can not pay for the down payment amount. But instead of selecting a no-cost loan you can wait for some more time, build some savings so that you are able to pay for the closing costs and then buy a home.

jameshogg · Posted: Wed Sep 20, 2006 5:06 pm Post subject:

Hi,

As your credit score is quite good you will be able to qualify for a 80-20 loan. You can read about such loans from this page.

In addition I would also tell you not to go for a no-cost loan and wait until you have some savings for payment of closing costs.

You can read one of the previous discussions to know why I am saying this, no-cost loan details.

James

Caron

Hi Guest,

You can buy a house with no down payment by selecting a suitable mortgage lender who is willing to offer you a loan without down payment. But then you may have to pay a higher rate of interest.

Lenders do charge a higher rate of interest from borrowers providing no down payment on the purchase price. Also, they charge high rates on no cost loan as the closing costs are included within the loan amount. As you are the only earning member in your family, so, if you can give yourself some more time and accumulate some savings before buying a house, that'll be great.

I would not recommend an 80-20 loan as you might have to pay a high rate of interest especially for the second mortgage. In your situation, where you couldn't save a good amount of money, it's better to avoid managing two mortgages. So, just wait for some time and gather some savings for buying the house.

Thanks,

Caron.

helping_user

Hi Guest,

You can take a no down payment or a no-cost 5/1 ARM loan in order to buy a house, though you may have to afford a slightly high rate of interest. But the interest rate on this ARM is around 6% currently, so you need to find a lender who is willing to offer you a loan at a preferable rate.

The interest rate on this ARM will be fixed for at least 5 years after which it will go up on a yearly basis. At the end of 5 years, you can refinance the ARM with a fixed rate mortgage. Thus for the first 5 years your monthly payments will be fixed. Within this time period, you can save a good amount of money and then use it to pay the closing costs when you refinance.

Thanks

Guest

My HUD-1 states that the PMI is rolled into the mortgage, but I am also being charged the same amount ($2,000) at the closing for Line 902 - Mortgage Insurance Premium.. is this a mistake on the attorneys end? It has inflated my closings costs to a few dollars shy of $9,000! On a $160K loan with $20K down.

smithsussane · Posted: Sat Oct 11, 2008 12:26 am Post subject:

Hi Mike A!

Welcome to Forums!

I think its a mistake on the part of the Attorney. It will be better if you could speak to your attorney and ask him to rectify it if its a mistake.

Sussane

Guest

Thanks!

Guest

What would my PMI be on a Loan of $143,500 with 10% down on a 30yr fixed rate mortgage?

adonis · Posted: Fri Dec 12, 2008 12:40 am Post subject:

Welcome Aaron,

You can check out the following link to find a PMI calculator:
"http://www.goodmortgage.com/calc_pmi.htm"

If you put in the values at the respective boxes, you will get the PMI you need to pay.

Guest

Our PMI is not escrowed. If we make the mortgage payments but fall into arrears on the PMI payments what can the insurance company do to us, to our property? Can they auction off the property for example?

Guest

If you do not pay the arrears on the PMI, the insurance company can stop the coverage. They may even place lien on your property.

gmakerley · Posted: Wed Apr 01, 2009 10:49 am Post subject:

how is it that your mi payment isn't escrowed? is your lender nuts?
i don't have an answer to your question, because i've never heard of such a situation.

Guest

Hi
My house is appraised at $193,000. I need $161,000 to refinance for a cheaper interest rate I don not currently have PMI. My question do I have to pay PMI on the $161K or just the $5K needed to meet the 80 LTV ratio? If my credit score is 720 can I find someone to do it without PMI?

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.77 Dollars($)

PMI will be based on the entire loan and will nto go away until you loan value reduces to 78% of your house value.

you need to call your lender and ask them to remove the PMI. They are suppose to remove it legally after your loan reaches 78%, but its your responsibility also.

Your loan documents may have established minimum time period for PMI. In this case, the seasoning requirement, if it exists, would be spelled out in your loan documents.

Another way to look at it:

PMI goes away one of three ways:
1) your mortgage balance reaches 78% of the original purchase price;
2) you can show that you have at least 20% equity in the home; or
3) you refinance and have at least 20 % equity in the home.

jenkin7 · Posted: Mon May 04, 2009 1:32 am Post subject:

Hi JJ,

Lenders generally approve loans with 75-80% LTV ratio. Loans with more than 80% LTV are considered as higher risk by the lender. Thus, even if they offer loans with more than 80% LTV, they will require you to purchase mortgage insurance and it will be based on the entire loan.

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