Reply to mortgage with no pmi and 5% down?

Forum Index » Money and Finances

Reply to "mortgage with no pmi and 5% down?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=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.[/quote]

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%? [/quote]
Exactly. They won't be. That's why you can pay down your rate even though rate was slightly higher. [/quote]

This is all wrong. [b]You don't have to refinance to remove the PMI.[/b] 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. [/quote]

[b]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.[/b]

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.[/quote]

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. [/quote]

Should've said as of![/quote]

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 %[/quote]

I'm pointing out that this is incorrect information about fha loans.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics