mortgage with no pmi and 5% down?

[Anonymous]

Anonymous wrote:If you can go up to 10% down i think you would have more options.

More options for what?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hi! I am the OP of the credit card payoff and have been offered 5% down, lender paid PMI or no PMI but a higher interest rate. We're talking with Washington First Mortgage, United Mutual Funding, and Sebonic. Quicken also offered it to us.

Of course, we haven't made an offer on a house yet, so there are lots of variables here.

It's still PMI, just a different way. The lender paid PMI is a lump sum that you pay as a "fee" and the lender purchases the MI. The higher interest rate version builds the PMI into the interest rate the lender is charging you.

I'm the PP. That's exactly right. You're still paying more for the bank to loan us money. But for the amount of time it will take us to save $100,000 for 20% down, it's worth it for us to take the higher interest rate today, if we can find a house!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Hi! I am the OP of the credit card payoff and have been offered 5% down, lender paid PMI or no PMI but a higher interest rate. We're talking with Washington First Mortgage, United Mutual Funding, and Sebonic. Quicken also offered it to us.

Of course, we haven't made an offer on a house yet, so there are lots of variables here.

It's still PMI, just a different way. The lender paid PMI is a lump sum that you pay as a "fee" and the lender purchases the MI. The higher interest rate version builds the PMI into the interest rate the lender is charging you.

I'm the PP. That's exactly right. You're still paying more for the bank to loan us money. But for the amount of time it will take us to save $100,000 for 20% down, it's worth it for us to take the higher interest rate today, if we can find a house!

Ditto. 4% isn't too bad for me, and my current house is 3.625%, which I still consider a good rate.

[Anonymous]

Navy federal

[Anonymous]

Some banks like SunTrust still do this for Doctors.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Hi! I am the OP of the credit card payoff and have been offered 5% down, lender paid PMI or no PMI but a higher interest rate. We're talking with Washington First Mortgage, United Mutual Funding, and Sebonic. Quicken also offered it to us.

Of course, we haven't made an offer on a house yet, so there are lots of variables here.

It's still PMI, just a different way. The lender paid PMI is a lump sum that you pay as a "fee" and the lender purchases the MI. The higher interest rate version builds the PMI into the interest rate the lender is charging you.

I'm the PP. That's exactly right. You're still paying more for the bank to loan us money. But for the amount of time it will take us to save $100,000 for 20% down, it's worth it for us to take the higher interest rate today, if we can find a house!

Compare the higher interest rate version with the outright PMI version. You might find that just paying the PMI (instead of building it into the interest rate) works better for you.

We compared all the options. We didn't like the interest rate version because you're paying for the life of the loan, so it ends up actually being more. We didn't like the upfront version either because we knew we wanted to do some renovations to the house. We also bought an older house and assumed unanticipated repairs would come up, so we were trying to limit the upfront costs.

I believe that your credit score affects the PMI payment you are quoted. We had excellent credit scores, so our PMI payment was pretty low. You also get pretty detailed information about when it falls off. There are options for early removal, but we calculated worst-case scenario (approx. 10 years). We compared that with the other options, and even taking into account the mortgage interest deduction, we opted for the lower interest rate on a 30-year loan.

[Anonymous]

Anonymous wrote:I wasn't able to find this either. I actually had 18% down, credit scores of 805 and couldn't get anything without PMI. The best they could offer me was a higher interest rate which I didn't want.

I was also told that PMI NEVER goes away anymore. You need to refinance once you reach 20% to make it go away.

This is WRONG. It depends on the loan you get. It never goes away on FHA loans. But if you get a conventional loan, that is a different story. They have to tell you the terms upfront.

I'm guessing it's a real estate agent who told you that. My advice is not to listen to real estate agents WRT loans. Call a loan officer and ask for all options. Most assume people want FHA if they aren't putting 20 percent down. But there are conventional (non-FHA) loans that don't require 20 percent down. You just have to ask about them. Their PMI is often a lot lower than the FHA PMI if you have good credit.

[Anonymous]

Navy Federal CU.

[Anonymous]

Quicken Loans gave us lender paid PMI for 5% down in 2016. We paid a higher interest rate for it but 3.5% is still actually quite low and we didn't want to have the PMI cash flow hit while going through two daycare bills. May not be worth it now with rates over 4%.

[Anonymous]

I have no details, but NASA Federal Credit Union has had an ad on their site for some time for 100 percent financing. Perhaps that is a rock to kick over?

We got our original FHA loan through NASA FCU and just refinanced on Monday to get out of the FHA loan and into a conventional loan (bye bye mortgage insurance). We like working with them (sadly, they will sell the servicing immediately to a larger bank).

We ended up with significant equity in the house through a combination of payments and a major home improvement project, but most of all neighborhood appreciation. I never want to go back to feeling like I own only 3.5 percent of my house. However, I know the feeling very well of just wanting to get into home ownership and the frustrating of feeling locked out. Good luck -- just make sure you are taking into account the mortgage insurance and any costs to refinance (if you will need to refinance to escape the PMI).

[Anonymous]

I would never take a higjer interest rate in return for no PMI. At least when your LTV hits 80% you can remove the PMI. I'd rather that than being locked into a higher than necessary mortgage for 30 years. You pay way more in the long run by essentially rolling PMI into your loan.

[Anonymous]

Anonymous wrote:Quicken Loans gave us lender paid PMI for 5% down in 2016. We paid a higher interest rate for it but 3.5% is still actually quite low and we didn't want to have the PMI cash flow hit while going through two daycare bills. May not be worth it now with rates over 4%.

4-5% is still historically low.

[Anonymous]

Do people still get 80/10/10 or 80/15/5? Not a huge fan of those, and they probably went away after 2008, but they could be an option.

[Anonymous]

Anonymous wrote:I would never take a higjer interest rate in return for no PMI. At least when your LTV hits 80% you can remove the PMI. I'd rather that than being locked into a higher than necessary mortgage for 30 years. You pay way more in the long run by essentially rolling PMI into your loan.

You can remove the PMI, but don't you have to refinance? If it takes 5 years to get 20% equity in your house, what's the likelihood that rates will be at 4.5%?

[Anonymous]

0 down no PMI at Navy Federal Credit Union - I think there are a few other credit unions that have similar deals.