Posted on: 15th Jan, 2014 05:04 am
Home purchase appraised at 245k, sales price 237k, 5% down and loan amount 225,150. Up front mortgage premium 9996.00? Plan on being in home 5-7 yrs. any suggestions? Credit not great. A lot of student loan debt and cc debt too.
Is this a conventional loan with a one time upfromt Mortgage Insurance ayment and no monthly?
If it is then do the math - compare how much it would cost you for 5-7 years paying monthly - My guess is if you are in for the short term like you say - the monthly payment will be the better deal - now if you were planning on staying forever eliminating the monthly is a no brainer.
Brian
If it is then do the math - compare how much it would cost you for 5-7 years paying monthly - My guess is if you are in for the short term like you say - the monthly payment will be the better deal - now if you were planning on staying forever eliminating the monthly is a no brainer.
Brian
It is for a conventional loan. Because of my large debt (though I am able to afford payments) my broker advised I could get more home because my payments with PMI would require me to look at houses in a different price bracket. Also, that my credit score which is high 600 low 700 plays a factor in the pricing she received to purchase the upfront MI. I pay my bills, there are just a lot of them. Any thoughts?
That explains the high cost - the lower scores are causing you to pay a LOT for that upfront mortgage - if you have to buy in that price range it may be your only option? Have you looked at using the same money to pay of debt and eliminate payments? 9k can maybe pay off some things and still allow you to qualify with the monthly?
Just a thought
Brian
Just a thought
Brian
Thank you but my student loan debt is what is eating me. Apparently my break even point is at 5.8 yrs I thought but broker says at 160-180/m in PMI my break even is 4.6 to 5.2 years. She said she shopped around for it? I trust her and I have the cash available to pay this I just wanted to make sure. The alternative of a lower price range was a big difference in the house you can get in our local market (again 140k in student loan debt and about 37k in cc debt mostly from school)