mortgage with no pmi and 5% down?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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%?

Exactly. They won't be. That's why you can pay down your rate even though rate was slightly higher.

This is all wrong. You don't have to refinance to remove the PMI. When you hit 20%, you can request the lender drop it - and they have to do so at 22% equity. That could be a combo of you paying down your principal and the house appreciating in value. But whatever the case, your rate is your rate. We're paying 3.62% regardless, with PMI now and without PMI by next year.

Except for FHA loans. I think that's where the confusion is. They changed FHA loans a few years ago to where the pmi is for the life of the loan.

But if you have good credit and can go 5 percent, a conventional loan is far better than an FHA. The PMI is a lot less and comes off when you have 22 percent equity. The lender should be able to pinpoint when exactly that is based on just paying your monthly mortgage.

And of Dec 2015, my FHA loan I signed does not have pmi for the life of the loan. The 20% equity clause to have it removed is in my paperwork.

Should've said as of!

[Anonymous]

Lafayette fcu

[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.

Not necessarily true. Definitely true for an fha loan, but not for all loans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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%?

Exactly. They won't be. That's why you can pay down your rate even though rate was slightly higher.

This is all wrong. You don't have to refinance to remove the PMI. When you hit 20%, you can request the lender drop it - and they have to do so at 22% equity. That could be a combo of you paying down your principal and the house appreciating in value. But whatever the case, your rate is your rate. We're paying 3.62% regardless, with PMI now and without PMI by next year.

Except for FHA loans. I think that's where the confusion is. They changed FHA loans a few years ago to where the pmi is for the life of the loan.

But if you have good credit and can go 5 percent, a conventional loan is far better than an FHA. The PMI is a lot less and comes off when you have 22 percent equity. The lender should be able to pinpoint when exactly that is based on just paying your monthly mortgage.

And of Dec 2015, my FHA loan I signed does not have pmi for the life of the loan. The 20% equity clause to have it removed is in my paperwork.

Should've said as of!

But it is 20 % not based on increases in value. You go by the 20 % mark from original value after making sufficient principal payments to meet the 20 %

[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.

Unless its changed, I was told it goes away at 11 years now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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%?

Exactly. They won't be. That's why you can pay down your rate even though rate was slightly higher.

This is all wrong. You don't have to refinance to remove the PMI. When you hit 20%, you can request the lender drop it - and they have to do so at 22% equity. That could be a combo of you paying down your principal and the house appreciating in value. But whatever the case, your rate is your rate. We're paying 3.62% regardless, with PMI now and without PMI by next year.

Except for FHA loans. I think that's where the confusion is. They changed FHA loans a few years ago to where the pmi is for the life of the loan.

But if you have good credit and can go 5 percent, a conventional loan is far better than an FHA. The PMI is a lot less and comes off when you have 22 percent equity. The lender should be able to pinpoint when exactly that is based on just paying your monthly mortgage.

And of Dec 2015, my FHA loan I signed does not have pmi for the life of the loan. The 20% equity clause to have it removed is in my paperwork.

Should've said as of!

But it is 20 % not based on increases in value. You go by the 20 % mark from original value after making sufficient principal payments to meet the 20 %

I'm pointing out that this is incorrect information about fha loans.

[Anonymous]

Physicians can do mortgage with zero percent down and no pmi within 10 years of finishing training. Slightly higher interest rate. Suntrust has these.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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%?

Exactly. They won't be. That's why you can pay down your rate even though rate was slightly higher.

This is all wrong. You don't have to refinance to remove the PMI. When you hit 20%, you can request the lender drop it - and they have to do so at 22% equity. That could be a combo of you paying down your principal and the house appreciating in value. But whatever the case, your rate is your rate. We're paying 3.62% regardless, with PMI now and without PMI by next year.

Except for FHA loans. I think that's where the confusion is. They changed FHA loans a few years ago to where the pmi is for the life of the loan.

But if you have good credit and can go 5 percent, a conventional loan is far better than an FHA. The PMI is a lot less and comes off when you have 22 percent equity. The lender should be able to pinpoint when exactly that is based on just paying your monthly mortgage.

And of Dec 2015, my FHA loan I signed does not have pmi for the life of the loan. The 20% equity clause to have it removed is in my paperwork.

So is the FHA loan I took out in March 2013. I have to pay PMI for 5 years and then can take it off as long as I have 20% equity (which I already do). I actually looked into refinancing last year, and my original loan officer advised me not to because my interest rate was so low and I would be able to eliminate the PMI in just two more years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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%?

Exactly. They won't be. That's why you can pay down your rate even though rate was slightly higher.

This is all wrong. You don't have to refinance to remove the PMI. When you hit 20%, you can request the lender drop it - and they have to do so at 22% equity. That could be a combo of you paying down your principal and the house appreciating in value. But whatever the case, your rate is your rate. We're paying 3.62% regardless, with PMI now and without PMI by next year.

Except for FHA loans. I think that's where the confusion is. They changed FHA loans a few years ago to where the pmi is for the life of the loan.

But if you have good credit and can go 5 percent, a conventional loan is far better than an FHA. The PMI is a lot less and comes off when you have 22 percent equity. The lender should be able to pinpoint when exactly that is based on just paying your monthly mortgage.

And of Dec 2015, my FHA loan I signed does not have pmi for the life of the loan. The 20% equity clause to have it removed is in my paperwork.

So is the FHA loan I took out in March 2013. I have to pay PMI for 5 years and then can take it off as long as I have 20% equity (which I already do). I actually looked into refinancing last year, and my original loan officer advised me not to because my interest rate was so low and I would be able to eliminate the PMI in just two more years.

Word of caution: We had an FHA loan (taken out in 2011), and like you I thought mine "timed out" in 5 years. Turns out, there were two criterion:

1. 5 years mortgage insurance payments
and
2. A little more than 20 percent equity gained in the house (based on original purchase price) -- for us, that was going to take an additional 3 years (8 yrs total), and it was only that fast because we were making a couple extra payments every year.

So even for the "old" FHA loans where it is possible to one day slip out of the mortgage insurance, it may not be as straightforward as 'pay in for 5 years.'

We had a lot more than 20 percent equity when I inquired (due to home improvements, appreciation) and decided to refinance. The saved mortgage insurance paid for the refinance, and we got some other benefits out of it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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%?

Exactly. They won't be. That's why you can pay down your rate even though rate was slightly higher.

This is all wrong. You don't have to refinance to remove the PMI. When you hit 20%, you can request the lender drop it - and they have to do so at 22% equity. That could be a combo of you paying down your principal and the house appreciating in value. But whatever the case, your rate is your rate. We're paying 3.62% regardless, with PMI now and without PMI by next year.

Except for FHA loans. I think that's where the confusion is. They changed FHA loans a few years ago to where the pmi is for the life of the loan.

But if you have good credit and can go 5 percent, a conventional loan is far better than an FHA. The PMI is a lot less and comes off when you have 22 percent equity. The lender should be able to pinpoint when exactly that is based on just paying your monthly mortgage.

And of Dec 2015, my FHA loan I signed does not have pmi for the life of the loan. The 20% equity clause to have it removed is in my paperwork.

So is the FHA loan I took out in March 2013. I have to pay PMI for 5 years and then can take it off as long as I have 20% equity (which I already do). I actually looked into refinancing last year, and my original loan officer advised me not to because my interest rate was so low and I would be able to eliminate the PMI in just two more years.

Word of caution: We had an FHA loan (taken out in 2011), and like you I thought mine "timed out" in 5 years. Turns out, there were two criterion:

1. 5 years mortgage insurance payments
and
2. A little more than 20 percent equity gained in the house (based on original purchase price) -- for us, that was going to take an additional 3 years (8 yrs total), and it was only that fast because we were making a couple extra payments every year.

So even for the "old" FHA loans where it is possible to one day slip out of the mortgage insurance, it may not be as straightforward as 'pay in for 5 years.'

We had a lot more than 20 percent equity when I inquired (due to home improvements, appreciation) and decided to refinance. The saved mortgage insurance paid for the refinance, and we got some other benefits out of it.

Thanks, I actually did some research on the HUD website last night and reached out to my loan officer for clarification. We have right around 20% equity right now, so I would not be against refinancing if it is going to save me a few years of mortgage insurance.

[Anonymous]

We did this through a broker. Mortgage Link-office was in Maryland