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Darlene Said:

Is there an upfront payment for PMI(Private Mortgage Insurance) due at closing?

We Answered:

my goodness, some of these answers are off. The guidelines for determining PMI were changed effective 7/14/08 to a risk based model. Now for a 30 year, you pay upfront, which can be anywhere from 1.25-2.25, depending on what your doing. You will also pay a monthy charge, anywhere from .25-.75, again depending on program and risk. The upfront is usually factored into your loan amount and can raise what you need to bring to closing. What you need to toy with is can you make payments for a 15yr program, these do not have upfront PMI, but they do have the monthly. Another factor in your decision is whether or not congress will pass legislation again allowing borrower's to write off pmi, it would seem logical that they would to entice home buying, thus if the law is passed, the around 4k that you would pay for upfront on a 30 yr could be written off, hope this helps

Don Said:

Question on sub-prime mortgage down payment insurance.?

We Answered:

I have never heard of down payment insurance. Most, if not all, sub-prime loans have no mortgage insurance.

Scott Said:

Do you have to pay mortgage insurance with the FHA 3.5% down payment loan?

We Answered:

Hi: Unfortunately, you still have to pay MIP until the principal balance of the home is 80% of the home's value. It's disheartening, but the only way to avoid MIP is to come up with 20% down.

I put 8% down last year and I have another 8 more years to go until I can get the MIP taken off! GRRRR!!

Good luck.

Randy Said:

Do you think $1400 for a mortgage payment with insurance and taxes is reasonable?

We Answered:

no one can answer this question since we don't know any other facts.

With a 1,400 a month payment, your should have a gross income of $67,000 a year. If you earn less, then YES, it is unreasonable.