Mortgage Experiences & PMI
- Thread starter Mike K
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He just posted in another thread how he didn't read a medium length post, because he didn't want to/care to read something that long....thought it was a bit ironic considering his average post length is 500 words
Still figuring it out. It looks like no matter how we slice it it's going to be a complicated transaction. We sat out on offering on this house though because it was multiple offers right off the bat and they wanted me to get an offer in by 6:00 yesterday to compete with the others.
I wasn't about to make an emotional decision on something like this. So we'll figure it out so that we're ready to offer when the next house pops up.
I wasn't about to make an emotional decision on something like this. So we'll figure it out so that we're ready to offer when the next house pops up.
I saw a home come on the market one Friday afternoon around 4 PM. Called my customers and we looked at it at 6. Wrote the offer that night and got an acceptance Saturday morning. Good thing because they received two more offers on Sunday.
In today's market, it helps to move fast and make the offer fast on bargain or attractive homes. You should be able to have an inspection period written into your contract that will give you the opportunity to inspect the home in more detail once you have an executed contract.
Disclaimer: I am licensed in Florida. Check with your local Realtors to get information about your State's real estate laws and trends.
In today's market, it helps to move fast and make the offer fast on bargain or attractive homes. You should be able to have an inspection period written into your contract that will give you the opportunity to inspect the home in more detail once you have an executed contract.
Disclaimer: I am licensed in Florida. Check with your local Realtors to get information about your State's real estate laws and trends.
So when I shopped rates and down payments and PMI's, the lower my initial down payment the lower the interest rate...it was weird...
How much is your PMI and what % did you put down if you don't mind my asking?
(I put down ~13% and have a $44 PMI payment)
yeah completely understandable now
It's basically insurance...and the lower the initial down payment, the higher the risk to the mortgage lender. I'm sure there are more factors that influence it, such as credit score, loan amount, and even possibly location of the loan.
Yeah, I thought that was implied knowledge...
I can start "applying" to remove my PMI when my debt ratio reaches 18%, but will automatically be removed at 20%. If you bought a recent FHA home, you have lifetime PMI (or until you refinance)
That is correct. But the PMI % you are charged goes down with the higher down payment. Here was the numbers for me. You can see how putting more down would decreases that monthly insurance payment as they call it.
[FONT="] 5 % down is 1.20% (Of[FONT="] Loan amount[/FONT]) PMI =[FONT="]$294 a month on as example a 300k [FONT="]loa[FONT="]n.[/FONT][/FONT][/FONT]
10 % down is .76% [/FONT][FONT="][FONT="]([/FONT][/FONT][FONT="][FONT="][FONT="]Of[FONT="] Loan amount[/FONT][/FONT]) PMI = $228 a month [/FONT][/FONT][FONT="][FONT="][FONT="][FONT="]on as example a 300k [FONT="]loa[FONT="]n.[/FONT][/FONT][/FONT][/FONT][/FONT]
15% down is .44% [/FONT][FONT="]([/FONT][FONT="][FONT="]Of[FONT="] Loan amount[/FONT][/FONT]) PMI[FONT="] = $132 a month [/FONT][/FONT][FONT="][FONT="][FONT="][FONT="]on as example a 300k [FONT="]loa[FONT="]n.[/FONT][/FONT][/FONT][/FONT][/FONT][/FONT]
I will say that most of the "estimates" for what my PMI should be according to those calculators were way off....this one was spot on though, plus has an amortization schedule
PMI Calculator - How to Calculate Mortgage Insurance
Yep good tool I used it as well. Point of my post was to show the big difference in down payments compared to PMI %.
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