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| foxnstocks |
 Posted: Thu Feb 10, 2005 12:59 pm Post subject: Don't pay PMI insurance |
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Investing Sr. Associate
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| When we bought our home, our mortgage professional suggested that we take out a loan for 80% of the price and another for 10% in the form of a home equity loan. The remaining 10% was our downpayment. This way we eliminated costly PMI. |
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| rlnlandal |
| Posted: Thu Feb 10, 2005 3:51 pm Post subject: |
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Investing Associate
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| Yeah I have heard PMI is rough. My friend is buying a house and is scrambling for the $$ so she isn't stuck with PMI again. |
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| trixiezzz |
| Posted: Sat Feb 12, 2005 5:23 am Post subject: |
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Investing Manager
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| I agree completely. The 20% in cash seemed like a lot when we first got our house. But over the course of years, it has really saved us a lot of money ~ plus the 20% payment boosted our equity in the long run! |
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| JoiseyFamily |
| Posted: Sat Feb 19, 2005 11:23 am Post subject: |
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Investing Associate
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| I can't agree more. I had PMI on my townhouse, and could never get rid of it. We didn't go that route on our new home. If you can do it another way then do it. |
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| momm2four |
| Posted: Sat Feb 19, 2005 1:48 pm Post subject: |
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Investing Associate
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| I wouldn't have known that you can have PMI dropped after paying down to under 80% of your loan if I hadn't gone through a home buying class. We just refinanced six or so months ago and were able to drop our PMI. Saved us some $$$! |
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| mrsboz |
| Posted: Sat Feb 19, 2005 4:24 pm Post subject: |
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Investing Sr. Associate
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| I totally agree do whatever you can not to get involved in PMI. When we bought our townhouse we had it and it seemed like we couldn't get rid of it. So, when we bought our house I said that we had to wait until we had a big enough down payment so that we didn't have to do the PMI thing again. Such a nice feeling. |
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| lmountford |
| Posted: Sun Feb 20, 2005 4:12 am Post subject: |
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Investing Sr. Associate
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Hi,
I'm from the Uk could someone please explain what PMI is?
Many Thanks |
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| bigdave |
| Posted: Sun Feb 20, 2005 6:07 am Post subject: |
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Investing Sr. Associate
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PMI= Private Mortgage Insurance..... most mortgage companies require it if you don't have 20% down this is a guarantee that they will get paid but you have to pay for it... It is anywhere from 40 to 100 bucks extra a MONTH!! Do note that if you shop around some mortgage comes with not make you get PMI if you have 10% down!!!  this is the deal i am jumping on when i buy my home in couple months!! |
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| JoiseyFamily |
| Posted: Sun Feb 20, 2005 1:34 pm Post subject: |
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Investing Associate
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| PMI is horrible, but that is how they get people that don't have a high down payment. |
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| ladyelle |
| Posted: Wed Feb 23, 2005 9:36 am Post subject: |
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Investing Associate
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| We also put only 10% down and avoided PMI by taking out a line of credit for the additional 10%. |
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| SCmomof3 |
| Posted: Fri Feb 25, 2005 1:10 pm Post subject: |
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Investing Associate
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I honestly don't know HOW we got out of PMI because we only put about 3% down on a conventional loan - not FHA or anything. It was a special loan program that I truly think God Himself put in place because no one else I know of has EVER heard of it.  Our interest is a little high due to ID theft my DH suffered from 
When we looked into refinancing, thank God I asked about PMI. We would have had to pay PMI had we refinanced! I would much rather pay tax deductible interest than throw away PMI!
Just an FYI that I hope might help someone. |
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| keokagal |
| Posted: Sun Mar 06, 2005 3:18 pm Post subject: |
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Investing Sr. Associate
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| When we bought the first time had a PMI as we were novices. Would not make that mistake again. |
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| eggdrunk |
| Posted: Fri Mar 11, 2005 10:12 am Post subject: |
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New Poster
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I have an 80/20 (80% mortgage and 20% HELOC). I don't pay PMI and did not put anything except for the closing costs. To do this they require you to have on hand the closing costs and 3 months reserve.
Say for example you have enough money to pay for the closing costs, 10% down and reserves. You can always take an 80/20 loan, then after closing, park the 10% that you are supposed to put down for the house into the HELOC. That way, if you have an emergency that exceeds your reserves, you can always take out some of the 10% money that you paid on the HELOC. If you do the 80/10/10, you can't get out your 10% unless you refinance your HELOC.
Caveat though, the higher your LTV, the higher your interest for the HELOC. But usually, most lenders will give you their best rate up to 95% LTV so you can do an 80/15/5.
Hope this helps. |
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| freeye |
| Posted: Mon May 23, 2005 11:17 am Post subject: |
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Investing Manager
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| raspberry24 |
| Posted: Mon May 23, 2005 5:03 pm Post subject: |
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Member of the Month
May
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| I made sure I saved 20% before we bought the house we wanted. I was lucky enough to live at home with my parents before I got married with out having many bills to pay. I was able to save a lot of money that way. |
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