What Is Mortgage Pmi

Lance Said:

Which re-financing option is better - 95% financing with PMI or 1st and 2nd mortgage without PMI?

We Answered:

the 20% mtg will be at a lot higher rate than the primary mtg - a couple of percent higher at least - you have to see which way you wind up paying more on - but also - the PMI isn't deductible like the extra interest would be so a lot of analysis is needed

Miguel Said:

Confused about Mortgage PMI, LTV, HELOC & Appraisal...Please help!?

We Answered:

Pretty standard across the industry: The lender will use the lesser of the sales price or appraised value to determine the dollar amount by which they will calculate LTV. So in this situation, your sales price is what they would base LTV on. It kinda sucks, but that's how it is. The good news: you have instant equity when you close. You're know you're getting a good deal if you buy under appraised value. In regards to the HELOC...I'm starting to see lenders remove this product from their portfolio. There are still some out there, but they're definitely harder to find/get. I would suggest waiting until after you close to get the HELOC for a number of reasons and there are still some lenders out there who will go to 100%. I know of one in particular (Compass Bank) who will still go to 100% CLTV (combined loan to value) as long as the loan is for a primary residence, not in a declining market and other requirements. And they also will only close as a "stand alone" HELOC...they will not close as a 2nd mtg for a purchase...odd, but that's their rule. Another industry rule of thumb: The "lesser of the sales price or appraised value" rule is in effect for the first year you own the property. Again, there are some lenders who will enforce it for only 6 mths, or 3 mths, but they are harder to find and probably won't go more than 90% CLTV. I believe the aforementioned bank would use the sales price. Are you planning on rennovating and living there? Fix and Flip?

Alvin Said:

Can I be reimbursed for private mortgage insurance (PMI) that I did not have to pay?

We Answered:

You can't get a refund now. If your hearing that you can it's because like 4 or 5 years ago FHA loans use to have pmi that you would pay up front for 7 years or something like that. And if you got out of the FHA loan you would get it back. But now it's all month to month but we can use new value after 6 months now and get you out of PMI go to http://www.ocrate.com if you need more info and anyone looking to buy a home that is the place to go. Nashionwide.

Rosemary Said:

I am planning to take a home mortgage. I am so confused with this points, PMI, mortgage rate etc. Any Pointers

We Answered:

I have gotten 4 loans from the company below. In my life I have gotten dozens of RE loans. These guys are wonderful.

www.eloan.com

My sister and brolaw just used them and they were thrilled.

Study some of the info on www.bankrate.com

And yes, they get you one way or the other. It all balances out over the span of 8 yrs. But in this market you'll want to hedge your bets and get a fixed rate. Don't let anyone talk you into an adjustable, Just DONT

very best of luck,

Leah Said:

New home, mortgage, PMI?

We Answered:

You will not have any PMI, your equity at the completion would be too high.

In order to qualify for a construction loan you are going to need 25% down before you can even get started

After you are complete you have to convert to a conventional loan, but your balance should be less then the appraised value, therefore no PMI.

If you are building yourself keep in mind that the bank is very strict about time lines, you still have only 6-9 months to get your property complete.

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