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Jerome Said:

which is the better mortgage for us?

We Answered:

Hello, and Happy Holidays to you and your boyfriend.

Now to the loan question. Sounds like you have done some homework already, by knowing about the PMI or MI as some call it.

Do you know how your credit is? If it is great, you go conforming or FHA or My Community program at 100 percent. These do have PMI (ok), if your credit is lower like 580 - 600 middle score, than you go sub-prime and that is a 1 loan (or 2, you choose) and the 1 loan HAS NO MI OR PMI. Believe it or not, sub-prime rates for a 1 loan is running in the 7's, so that is not bad at all with no PMI. FHA does have MI, but VA loans so not have MI.

Talk with a Mortgage Broker, on that underwrites of many companies - that will give you more choices to choose from. Ask how long they have been in the business, so you knwo you are getting one that is knowledgeable, and one that knows the various programs out there. You may want a fixed rate at a 50 yr, 40 yt, 50 yr, a interest only, option payment plan, just to name a few programs (believe me, there are many programs out there).

130,000 at a 8 rate is 908.98 no MI One loan
130,000 at a 7 rate is 864.89 with mi of 104.01 for a total payment of 968.90

130,000 as a 80/20 (80) 104,000 at 6.5 rate = 657.35 (Rate is estimate only)
(20) 26,000 at a 9 + rate = 206.20 = total payment of 863.55 P&I no MI (rate is a estimate only)

190,000 1 Loan = 1,326.51 NO MI (rate is higher, but you have no MI)
190,000 1 Loan with mi of MI = 1,200.93 MI is 279.59 for a payment of 1480.52

80/20 152,000 = 960.74
38,000 = 305.76 Total Payment 1266.50

I know it can be confusing, so talk with a Mortgage Broker (ok) Also, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

ALSO -
When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realtor, and the seller has to pay the realtor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far?? You may find a For Sale By Owner, they are sometimes more willing to help you with closing cost(s) associated with your loan, since there is no realtor fees.


http://www.nehemiahcorp.org/

http://www.fanniemaefoundation.org

http://www.fha-home-loans.com

http://www.freddiemac.com/

Brent Said:

How much useful is PMI certification ?

We Answered:

Sorry I dono...please let me know abt it

Philip Said:

How much would PMI be on a 80,000 loan?

We Answered:

There are a lot of variables. So I can only give you our Good Faith Estimate information for the FHA loan we have applied for. Purchase price 107,900. 3.5% down and closing costs are being paid up front. Our loan amount would be $105,945. Principal & Interest Payments are $568.74, Hazard Insurance is $35.00 and Mortgage Insurance is $47.72. Interest rate is 5%

Floyd Said:

PMI how much to pay if apprasial is lower than purchase price?

We Answered:

The loan to value will be based upon the purchase price or appraisal value whichever is less. Therefore you will have to buy it down to appraisal value. I would look at a non conforming loan or sub prime loan as it wont have pmi. The end payment will be based on a slightly higher interest rate but will still be less than a conforming loan + PMI. You might be well served to get a second appraisal.

Eugene Said:

How can you "accurately guess" how much PMI (& cost) will be on your mortgage?

We Answered:

if FHA it is defined in their guidelines.

if conventional ask your lender. Assume $100 a month for $200,000 loan.

Willie Said:

how much should my pmi be on a 240,000 house?

We Answered:

are you getting a fha loan?? your PMI depends on the actual loan amount and loan to value.. check this site.

http://www.goodmortgage.com/calc_pmi.htm

u can calculate your PMI if you fill up the blanks