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TheDivineMrsM
2 girls 4 me!
Member since 8/08 7878 total posts
Name:
Mama mama mama....
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Cost of PMI?
How much is PMI? Is there a formula to calculate it in advance or is it dependant on the individual (credit rating, income, etc?)
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Posted 4/23/14 3:15 PM  |
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Prudential Douglas Elliman Real Estate
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OnlyU12
LIF Toddler
Member since 8/13 431 total posts
Name:
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Re: Cost of PMI?
It depends on the loan program you choose, the loan amount and how much you put down. Conventional has the cheapest, FHA had the highest.
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| Posted 4/23/14 3:20 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Cost of PMI?
there are too many factors involved
credit, downpayment, appraisal of house
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| Posted 4/23/14 3:43 PM |
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DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
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Re: Cost of PMI?
I don't think I paid PMI....I don't think its a given that you will
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| Posted 4/23/14 5:17 PM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Re: Cost of PMI?
to give you an idea...i put down 3.5% on an FHA loan. my loan is about $400k and my monthly PMI is $420. not to mention the $6300 in PMI i paid upfront at closing. but thats only for an FHA loan.
if you put down 20% on a conventional loan there is no PMI.
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| Posted 4/23/14 6:04 PM |
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Jenn79
One more?
Member since 2/12 2410 total posts
Name:
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Re: Cost of PMI?
I have an FHA loan from 2011 (I think pmi goes up every year) our loan is for 250k and our pmi is $195. I don't believe we put anything down at closing for pmi.
Eta: my sister got a special first time homebuyers loan from capital 1 that required no pmi
Message edited 4/23/2014 7:45:14 PM.
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| Posted 4/23/14 7:35 PM |
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TheDivineMrsM
2 girls 4 me!
Member since 8/08 7878 total posts
Name:
Mama mama mama....
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Re: Cost of PMI?
The economy ate the equity on our current house, so any kind of downpayment will likely come from savings. Not sure if we're going to be able to put together 20% of the downpayment for the kind of house we're going to want. Is there a way to buy a house with less that 20% down? Putting down 10-15% is a more likely scenario if a loan program would let us. We have excellent credit and steady jobs.
Message edited 4/23/2014 7:51:15 PM.
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| Posted 4/23/14 7:50 PM |
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OnlyU12
LIF Toddler
Member since 8/13 431 total posts
Name:
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Re: Cost of PMI?
Yes you can do a conventional loan with 10% down payment and even with 5%. You can go as low as 3% down payment. You really would need to speak to a mortgage specialist to go over all your financials.
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| Posted 4/23/14 7:56 PM |
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Re: Cost of PMI?
Posted by TheDivineMrsM
The economy ate the equity on our current house, so any kind of downpayment will likely come from savings. Not sure if we're going to be able to put together 20% of the downpayment for the kind of house we're going to want. Is there a way to buy a house with less that 20% down? Putting down 10-15% is a more likely scenario if a loan program would let us. We have excellent credit and steady jobs.
You can get an FHA or a conventional loan with 10% down. For a conventional loan, the credit and debt-to-income requirements are a bit more stringent.
Usually people who can qualify for a conventional loan opt to go that route because of pmi. You will pay pmi either way. The only way to avoid pmi is to get a conventional loan and put a minimum of 20% down.
But the pmi for FHA will cost more, and it's permanent (for the life of the loan), whereas pmi can eventually come off of a conventional loan when you build enough equity.
Also, aside from the monthly pmi that you will pay regardless of whether you go the conventional or FHA route, with FHA, there is an upfront mortgage premium to be paid at closing. I believe it's still 1.75%. However, it is not paid out of pocket, it's rolled into the loan. So if your loan amount is $400K, you add in $7K (1.75% of $400K), and the loan amount actually becomes $407,000. With a conventional loan, you pay the monthly pmi, but not an upfront premium.
Interest rates are a bit lower for an FHA loan, but the cost of pmi more than offsets any benefit of the lower rate.
But as the previous poster said, the best thing to do is consult with a mortgage lender about your specific situation, and get advice about how best to structure the financing of your next home. It's hard to talk in generalities.
But it is important to get a handle on how the pmi will factor in. A lot of people use online mortgage calculators to try to figure out what they can afford (get an idea of monthly payment), but that fails to factor in pmi, which is a significant added cost.
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| Posted 4/23/14 9:22 PM |
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Cost of PMI?
Our loan is for 230,000 and our pmi is about $200 a month (3.5% down)
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| Posted 4/24/14 12:26 PM |
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Lisko73
LIF Infant
Member since 1/10 291 total posts
Name:
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Cost of PMI?
when we took our loan we were told that the pmi can be taken off after 5 yrs. Is that true?
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| Posted 4/24/14 12:49 PM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Cost of PMI?
We did just under 10%, with about $300K in mortgage, house appraised for much more than we paid, so now that we've been in the house and have been paying faithfully, we have well over 25% in equity at this point (based on the appraisal) so we need to have the appraisal redone, and will have the PMI removed (about $220/month).
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| Posted 4/24/14 12:57 PM |
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Re: Cost of PMI?
Posted by Lisko73
when we took our loan we were told that the pmi can be taken off after 5 yrs. Is that true?
When did you get your loan? That used to be the case (after 5 years, you could apply to have the pmi taken off -- you had to demonstrate you had 22% equity).
That changed about a year ago...new FHA loans that are issued after the change have permanent pmi for the life of the loan.
But if you got your loan before the change (early 2013 or before), you can still apply to have the pmi removed after 5 years, because it's grandfathered.
At least that's my understanding, but always good to double check with your mortgage lender!
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| Posted 4/24/14 4:00 PM |
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Lisko73
LIF Infant
Member since 1/10 291 total posts
Name:
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Cost of PMI?
2012 :)
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| Posted 4/24/14 5:00 PM |
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bunnyluck
LIF Adult
Member since 1/14 3196 total posts
Name:
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Cost of PMI?
Ours PMI is $170, on a $416K mortgage. We went convential, 10% down.
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| Posted 4/24/14 5:18 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Cost of PMI?
Ours is $110 a month, but we bought in 2010, tried a refi recently and the cost of pmi would put us in worse shape lol
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| Posted 4/25/14 12:30 AM |
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