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HomeIsWithU
Baby #2 on the way!
Member since 9/07 7816 total posts
Name:
Jenn
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Did anyone else see this about mortgages on the news yesterday?
I only caught the tail end of it, but I saw something on the news yesterday about the government lowering the minimum down payment amount from 20% to as low as 3% without the penalty of paying PMI. Am I understanding this correctly?? That we may now be able to put down much lower than the normal 20% and not have to pay PMI? This would really make things so much better for our home buying process if this is true!!
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Posted 10/23/14 10:55 AM  |
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summerBaby10
let's be nice
Member since 9/07 10208 total posts
Name:
Wifey
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Re: Did anyone else see this about mortgages on the news yesterday?
no, I haven't read this but wow, that is crazy.
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| Posted 10/23/14 11:03 AM |
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KGools
Happy
Member since 9/06 9532 total posts
Name:
Kim
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Re: Did anyone else see this about mortgages on the news yesterday?
I haven't heard about this, but would it eliminate the PMI for anyone who has it?
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| Posted 10/23/14 11:25 AM |
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HomeIsWithU
Baby #2 on the way!
Member since 9/07 7816 total posts
Name:
Jenn
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Re: Did anyone else see this about mortgages on the news yesterday?
Posted by KGools
I haven't heard about this, but would it eliminate the PMI for anyone who has it?
The news story did not specify what would happen o existing mortgages with PMI. Let me see if I can find some more info on it.
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| Posted 10/23/14 11:37 AM |
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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: Did anyone else see this about mortgages on the news yesterday?
This is the only thing I heard and it wasn't even close to that
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| Posted 10/23/14 12:41 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Did anyone else see this about mortgages on the news yesterday?
Yeah I was going to say no chance of seeing PMI disappear anytime soon. When you take out one of these low down payment mortgages, you are a big liability in the bank's eyes. That liability doesn't come for free, thus they charge you private mortgage INSURANCE. The bank is basically insuring themselves that you won't default and you are paying for that.
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| Posted 10/23/14 2:02 PM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Did anyone else see this about mortgages on the news yesterday?
I had it easy when I got my mortgage in 2005. Decent interest rate, 6.5%, absolutely ZERO down payment, and NO PMI. I'm glad I'm not buying a house today, it seems to be so much more of a headache.
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| Posted 10/24/14 7:29 PM |
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Re: Did anyone else see this about mortgages on the news yesterday?
I only put down 10% and have no pmi with an interest rate .25 higher than it would have been. It's lender paid pmi
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| Posted 10/28/14 4:02 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Did anyone else see this about mortgages on the news yesterday?
I didn't see it but I cant see how that would be good in the long run. Wouldn't that be the path to another housing meltdown? If you don't have to invest money in the house--seems like it would be easier to walk away when one cant afford the payment?
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| Posted 10/29/14 9:20 AM |
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Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
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Re: Did anyone else see this about mortgages on the news yesterday?
Posted by WestEndLove
I only put down 10% and have no pmi with an interest rate .25 higher than it would have been. It's lender paid pmi
i read about this the other day as well, as a solution to 20%.
i bought in 2006 at 80/20 no PMI, nothing really down. now i have no equity and can't even sell low & buy low because i'd have to come up with the difference. I"ve since refinanced my 80 but the 20 doesnt have that option. so i am paying extra to try to get it gone in 5 years.
Moral of that story is i WISH i had saved 20%! i think if i bought again, i would try to save or wait til i can sell so i have that kind of down payment!
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| Posted 10/29/14 10:37 AM |
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HomeIsWithU
Baby #2 on the way!
Member since 9/07 7816 total posts
Name:
Jenn
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Re: Did anyone else see this about mortgages on the news yesterday?
Posted by WestEndLove
I only put down 10% and have no pmi with an interest rate .25 higher than it would have been. It's lender paid pmi
This is an option that we had not previously heard of. When we bought our townhouse in 2011 we put the full 20% down to avoid PMI. This time around, we will not have the full 20% to put down but we also REALLY don't want to pay PMI. This might be a good option for us as long as we're eligible.
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| Posted 10/29/14 2:38 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Did anyone else see this about mortgages on the news yesterday?
You are paying for lender pmi- via the higher rate.
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| Posted 10/29/14 9:07 PM |
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momtimes2
LIF Infant
Member since 4/14 333 total posts
Name:
stephanie
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Did anyone else see this about mortgages on the news yesterday?
I am closing on our new home shortly, we put 5% down on a conventional mortgage but are paying PMI until we have 20% equity in the home. My BIL said with FHA loans, the PMI is for the life of the loan, never goes away.
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| Posted 10/30/14 10:14 AM |
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LInMI
LIF Adult
Member since 7/10 1800 total posts
Name:
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Re: Did anyone else see this about mortgages on the news yesterday?
Posted by WestEndLove
I only put down 10% and have no pmi with an interest rate .25 higher than it would have been. It's lender paid pmi
This is an option I would be interested in. May I ask who your lender is?
Thanks!
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| Posted 10/30/14 8:58 PM |
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Mom1234
LIF Adolescent
Member since 9/14 576 total posts
Name:
L
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Did anyone else see this about mortgages on the news yesterday?
I dont understand how this is a good option. You are now paying at an interest rate .25% higher for the life of the loan, when you can just pay the pmi for a few years until you have 20% equity in the home.
I just don't get it.
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| Posted 11/1/14 2:11 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Did anyone else see this about mortgages on the news yesterday?
Posted by Mom1234
I dont understand how this is a good option. You are now paying at an interest rate .25% higher for the life of the loan, when you can just pay the pmi for a few years until you have 20% equity in the home.
I just don't get it.
If it's an fha it's for the life of the loan now though...
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| Posted 11/1/14 6:15 PM |
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Mom1234
LIF Adolescent
Member since 9/14 576 total posts
Name:
L
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Re: Did anyone else see this about mortgages on the news yesterday?
Posted by Mrs213
Posted by Mom1234
I dont understand how this is a good option. You are now paying at an interest rate .25% higher for the life of the loan, when you can just pay the pmi for a few years until you have 20% equity in the home.
I just don't get it.
If it's an fha it's for the life of the loan now though...
Oooooooh I didn't know that
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| Posted 11/2/14 7:44 AM |
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