Anonymous wrote: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The 20% thing is obsolete, and has been for quite some time.
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Never a good idea to only put 10% down on a house, and in most cases yes, you will have to pay PMI.
Why not? It would probably take another 5+ years to save 20% while renting a place large enough for our family. By then, we might be completely priced out. We are looking way under what we're qualified for so we can comfortably afford the monthly payment with only 10% down. It seems like a better idea than renting until we're 40.
I wouldn't worry about being priced out. Prices probably will go down with new tax code and loss of mortgage interest deduction, etc., although interest rates could go up. The 20% down rule is there in case you lose your job you don't lose your house, among other reasons. Nothing wrong with renting until you jade even the d/p, and don't let realtors or mortgage brokers tell you otherwise.
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.
Anonymous wrote:Anonymous wrote:Anonymous wrote:We did it this past September. 10% down, no pmi but interest rate was 4.25%. Worked for us because it got us out of renting and into a house with the same monthly PITI as our rent, but we're still able to build equity.
You're probably not building much equity with the higher interest rate, and also not benefitting now that the standard interest is doubled and with changed rules re interest/tax deductions.
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.
Anonymous wrote:Anonymous wrote:Anonymous wrote:Never a good idea to only put 10% down on a house, and in most cases yes, you will have to pay PMI.
Why not? It would probably take another 5+ years to save 20% while renting a place large enough for our family. By then, we might be completely priced out. We are looking way under what we're qualified for so we can comfortably afford the monthly payment with only 10% down. It seems like a better idea than renting until we're 40.
I wouldn't worry about being priced out. Prices probably will go down with new tax code and loss of mortgage interest deduction, etc., although interest rates could go up. The 20% down rule is there in case you lose your job you don't lose your house, among other reasons. Nothing wrong with renting until you jade even the d/p, and don't let realtors or mortgage brokers tell you otherwise.
Anonymous wrote:We both have credit scores over 800, but can only do about 10% down. Is there a way to avoid PMI that doesn't raise the interest rate? I have heard/read conflicting things. Thanks!
Anonymous wrote:Anonymous wrote:We did it this past September. 10% down, no pmi but interest rate was 4.25%. Worked for us because it got us out of renting and into a house with the same monthly PITI as our rent, but we're still able to build equity.
You're probably not building much equity with the higher interest rate, and also not benefitting now that the standard interest is doubled and with changed rules re interest/tax deductions.
Anonymous wrote: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.
Anonymous wrote:NP here. I’m not a Fed. Could I look at loans from either of them?
Anonymous wrote:Anonymous wrote:Navy Federal Credit Union has no PMI mortgages. Also, NASA Federal Creit Union has no PMI mortgages for first-time buyers.
(I got the NASA Fed mortgage 4 years ago when I bought my house, and I had no issues. Also, I just did a Navy Fed refi w/ no PMI...saving $100/month.)
I'm a Fed, but don't work for the Navy or NASA. Any chance I can still join? I will also look into my federal agency's CU.