No Pmi Loan

Penny Said:

Can I buy a house with no money down & no PMI but can still get a loan?

We Answered:

Any time you finance more than 80% of your purchase price in one loan, you'll pay something extra for it. Whether it's PMI, or a higher rate that the lender uses to insure the loan themselves, you're paying for it one way or another.

The alternative is to get an 80/20, where you finance 80% on your first mortgage and 20% on your second. You avoid MI, but you have a higher-rate 2nd mortgage instead. With good credit scores, this is often the cheaper option still, but with MI now being potentially tax-deductible, both should be considered, especially depending on how long you plan to be in your home. The longer you stay, the more sense the MI option might make, since MI can be dropped eventually.

Velma Said:

Would PMI insurance satisfy the loan if even if there is no hardship?

We Answered:

HA HA HA, No. PMI protects the lien holders, not the borrower.

Craig Said:

I'm purchasing a $600K home for $525K, financing 90%--$475K, whencould I refi to remove PMI? No loan restrictn

We Answered:

$525,000 house. $475,000 mortgage.

When your balance you owe is no longer more than 80% of $525,000 ($420,000), you don't need PMI.

$475,000 * 7% = $3160.19/mo * 30 years.
$475,000 * 6% = $4008.32/mo * 15 years.

With a 30 year mortgage, it will take 8 years before you owe less than $420,000.

With the 15 year option, it will take 2 1/2 years to get what you owe down to $420,000.

Jimmy Said:

10% mortage loan with no PMI or closing cost?

We Answered:

Do you mean 10% down?

Might be better to wait and try to save 20%, prices aren't going anywhere for a while.

Sorry, haven't been in the mortgage market for a while.

Carolyn Said:

Smaller down payment with PMI vs. home equity loan, no PMI?

We Answered:

Right now, you don't want to sink all of your savings in real estate with the market as bad as it is right now. You could lose it all if something unexpected happened and you had to move. I'd go with the 10% down and pay the PMI. Get a home equity loan later to do renovations and restructure your 1st mortgage to get rid of the PMI.

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