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re: What's the deal with PMI these days when purchasing a new home?
Posted on 3/26/10 at 7:49 am to Catman88
Posted on 3/26/10 at 7:49 am to Catman88
Ok just went and checked. I pay 83.56 a month on a 200k loan.
In about 6 years it drops off assuming I do not make any extra payments. So thats close to 6k I would pay to have MMI.
If I say Im going to wait until I have 40k saved I take a BIG risk that the rate will go up. If that rate goes up just to 7% thats close to THREE HUNDRED a month for the life of the loan. Not to mention the cost of the same house would be likely higher. Taking your advice could lead to a 100k mistake.
In about 6 years it drops off assuming I do not make any extra payments. So thats close to 6k I would pay to have MMI.
If I say Im going to wait until I have 40k saved I take a BIG risk that the rate will go up. If that rate goes up just to 7% thats close to THREE HUNDRED a month for the life of the loan. Not to mention the cost of the same house would be likely higher. Taking your advice could lead to a 100k mistake.
This post was edited on 3/26/10 at 7:51 am
2
Posted on 3/26/10 at 8:46 am to Catman88
I have no problem paying the PMI. At the time we were both fresh out of school. Made good money but only put down 15%. My PMI payment is $68/month and will be dropping off in the next few months. At which point I will just continue to pay the same amount and let it go to principle. i pay $150/month extra anyway. PMI should be the least of your worries on whether or not you can afford a house. It just made sense to us not to take the full 20% out of our savings as we didn't have a house to sell for the down payment.
ETA: if your job is steady now is a fantastic time to buy with interest rates so low.
ETA: if your job is steady now is a fantastic time to buy with interest rates so low.
This post was edited on 3/26/10 at 8:47 am
Posted on 3/26/10 at 1:51 pm to Catman88
quote:
Ok just went and checked. I pay 83.56 a month on a 200k loan.
In about 6 years it drops off assuming I do not make any extra payments. So thats close to 6k I would pay to have MMI.
If I say Im going to wait until I have 40k saved I take a BIG risk that the rate will go up. If that rate goes up just to 7% thats close to THREE HUNDRED a month for the life of the loan. Not to mention the cost of the same house would be likely higher. Taking your advice could lead to a 100k mistake.
BOOM!
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