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Brenda Said:

what exactely is PMI insurance on mortgage? Who determines how much it is? Do I have to pay this for the rest?

We Answered:

You cause PMI by not making a 20% down payment. . .You are a higher risk borrower because you have little equity in property. . . Lender insures the 20% down payment you don't make and YOU pay the fee for this

It is an extra cost which you pay up front and monthly
After 5 years, you can pay for a professional appraisal and if you have 20% equity in the property, eliminate the PMI

Arnold Said:

Mortgage help - About how much will my payment be?

We Answered:

Good news is, more than likely you wil not have to worry about paying PMI unless you take 1 loan at 100% LTV. The best way to take a loan if you are a fthb, is too break it up into an 80/20. Breaking it up into two loans avoids PMI and will also lower your payment depending upon rate. When purchasing a home at 100% it is vey credit sensitive. Almost all of the subprime companies have changed their guidlines when qulaifying for 100%. If you have a least a 680 fico score you should have no problem.

With a purchase price of $120,000 you would be looking at a payment of around $671 for the first mortgage (rate 7.5%) depending upon credit and a payment of around $237 for the second mortgage (rate 11.5%) These will not be completly accurate becasue everybody's situation is different.

The total payment with taxes and insurance would be about $1041. That payment is PITI, with $1000 for taxes and $600 for insurance. Again, all of this really depends upon income, documented or stated, and fico score.

Any questions go ahead and shoot me an email, I would be happy to assist you with any more questions.

Bob Said:

How is the PMI insurance computed?

We Answered:

It depends on the type of loan.
1. For FHA take the loan amount x .005 / 12 for your monthly MI
2. If not FHA you can go to:
a. For a quick calculation: http://www.goodmortgage.com/Calc_PMI.htm
b. More accurate: https://www.e-pmi.com/pmib/MIOrigination/GetRateServlet

If you need any additional help, email me.

Eileen Said:

To buy a house in today's market...?

We Answered:

I suggest putting 3% down if you can manage to get the money together. With 3% down you can get into a FHA loan with mediocre credit. The rate will be a lot more affordable (and fixed) and just putting down 3% should decrease your payment considerably. PMI will be acquired through your mortgage banker or broker. Good luck.