You don’t have to work for NASA or the Navy for either. I was skeptical about NASA Fed because I’d never heard of them, but everything went perfectly. I highly recommend. And, as I said, Navy Fed has been great for my refi. Definitely check them both out, OP! |
NP here. I’m not a Fed. Could I look at loans from either of them? |
NASA Fed Credit Union doesn’t require any affiliations at all. (They aren’t really associated with NASA.) I’m a fed, so I don’t know if Navy Federal Credit Union requires military and gov’t service, but you can call and ask. |
Google Piggyback loans. |
Most lenders will be able to do ten percent down no pmi if you have great credit. Ask the difference in interest rate if you put twenty percent down to find out what the additional interest is with ten percent down. |
Any chance you qualify for a VA Loan?
We did 10% down on a VA Loan and there was no PMI. |
Pmi will eventually go away once you make enough payments. You live with the IR until you refinance or pay it off. |
The amount of principle paid off each month over the course of a loan does not change with the interest rate, it is exactly the same. What causes you to pay more with a higher interest rate is that you are paying more interest. Accordingly, this has no impact on how much equity you build up in the house over time. |
80/10/10 loan. |
We just did this, the interest rate w/out PMI is slightly higher (our lender was quoting around 4.25, or 4.5% I can't remember) but we eventually did 10% w/PMI and at a 3.875% interest rate. I'd rather have the cash in reserves than to put everything in the house. Besides, depending on how well your home appreciates, you will drop the PMI eventually (5 years or less) |
That's complete BS. The 20% rule is there so that if you do lose your job, or otherwise can't/don't make your payments, there will be sufficient equity to cover your obligations to the lender, including significant fees and penalties you will incur for nonpayment, even if the housing market takes a downturn. It's got nothing to do with looking out for the borrower. |
Yes, but you are paying more in interest that you could be investing elsewhere, at a higher return. |
It's amazing the lengths people go to justify purchasing homes they can't afford. If you don't have the 20% down payment you can't afford the home. It's that simple. |
LA Times had an article out last year, 54% of all buyers made down payments of less than 20%. For a first time home buyer, 60% of them put down 6% or less.
The 20% thing is obsolete, and has been for quite some time. |
Doesn't mean it's a good thing, just looser lending restrictions which got us in a heap of trouble about 10 years ago if you will recall. The 20% rule is still good economics. |