- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: PMI based off of 20% of appraisal or loan amount?
Posted on 4/8/14 at 11:09 am to hawkeye007
Posted on 4/8/14 at 11:09 am to hawkeye007
quote:
what type of relative? you might be able to do a non arms length loan. the seller can pay up to 3% on a conventional loan or 6% on an FHA loan
Aunt and uncle
1
Posted on 4/8/14 at 11:11 am to C
quote:
Chase will do everything they can to increase fees on your loan. Just a heads up...
Thanks for the heads up. I'll definitely shop around, just trying to narrow the field a little until we actually sell.
Posted on 4/8/14 at 12:34 pm to TigerFanatic1
Your aunt and uncle can do a gift of equity for you. Give me your email and i will explain it to you.
Posted on 4/8/14 at 12:59 pm to hawkeye007
(no message)
This post was edited on 4/8/14 at 1:47 pm
Posted on 4/8/14 at 1:39 pm to TigerFanatic1
got it and i am about to send you an email.
Posted on 4/8/14 at 8:10 pm to TigerFanatic1
quote:
Yeah, chase is starting to look a little bad. Lol. Chase told me my wife's score of 690 would hurt the interest rate because if mine being 790; I called GMFS this morning and the gentleman told be it would effect the rate be about .5%.
.5% on a 185k loan over 30 years is nothing to scoff at - approximately $20,000 in interest over the lifetime of the loan between 4.75% and 4.25%
Posted on 4/8/14 at 9:36 pm to slackster
quote:
.5% on a 185k loan over 30 years is nothing to scoff at - approximately $20,000 in interest over the lifetime of the loan between 4.75% and 4.25%
I typed the wrong thing, chase told me her score wouldn't hurt. As you stated, 0.5% is definitely a big deal.
Posted on 4/9/14 at 7:48 am to TigerFanatic1
You need to shop around. You use GMFS if you have trouble getting a loan, but if you can go any where, you need to go to a broker or someone else. I've been in the business a long time, the banks have never beaten a rate I quoted, just the fees. FHA may have a better rate, but you need to know the cost of the PMI and multiply it by the number of payments. Also, PMI doesn't go to interest, doesn't go to pricipal, it goes to the banks insurance that you don't default. If can go conventional, that is what you want. You can drop the PMI eventually. Banks will limit the fees, but they will not give you the best rate. All things being equal, you always want the lowest rate, especially if you plan on being there for more than 5 years. The real issue is everyone's situation is different, each deal is different. Most try to it equal for everyone, but you never get the whole story. Just shop around, it is your best bet at saving money. Also, ask for a GFE from everyone, and they don't need to run credit to give you an estimate.
Posted on 4/9/14 at 11:43 am to tiger94gop
Thanks for the advice. Most likely I will pay the 20% either way (unless I see an unlikely benefit to not covering it). I was hoping to use the equity in the home to payoff the high interest student loans.
Posted on 4/9/14 at 4:32 pm to hawkeye007
quote:
if you are buying the house the PMI is based of the loan amount. you have to put 20% down to avoid PMI and i wish you the best dealing with Chase.
Not sure if anyone fully answered the question, but you will pay PMI if the loan value is more than 80% of the home value, plain and simple.
If the home appraises for 245k, your loan cannot be more than 196k or you will pay PMI.
To use another example, if a home appraised for 300k, but you were buying it for 225k, you could technically finance the entire purchase and not pay PMI because the loan value would only be 75% of the actual home value.
Disclaimer: I am not a mortgage broker so I could be completely wrong.
Posted on 4/9/14 at 9:21 pm to hawkeye007
quote:
hawkeye007 PMI based off of 20% of appraisal or loan amount? Your aunt and uncle can do a gift of equity for you. Give me your email and i will explain it to you.
This
Posted on 4/10/14 at 10:53 am to thibtigerfan
Hawkeye,
Have you stated before where you work? I am assuming you are MLO.
Everything I was attempting to post as advice in this thread, you beat me to it.
I am out of New Orleans, you?
Have you stated before where you work? I am assuming you are MLO.
Everything I was attempting to post as advice in this thread, you beat me to it.
I am out of New Orleans, you?
Posted on 4/10/14 at 10:59 am to TigerFanatic1
quote:
Actually, the loan officer is pushing FHA due to the lower interest rate. It does look like there is an additional $3500 FHA fee though, so the lower interest rate isn't as great as it sounds.
You are correct. The "interest" rate is lower, but you will have 175bps(1.75%) of your loan amount financed in.
Also, 1.35% annually for the life of the loan. That is basically added into your "low" rate. This will be paid monthly for the life of the loan. Your APR, true cost of financing will be higher on FHA vs a 20% down conventional.
Posted on 4/10/14 at 12:06 pm to SomethingLikeA
Yep in Baton Rouge
Posted on 4/10/14 at 6:00 pm to SomethingLikeA
quote:
Also, 1.35% annually for the life of the loan. That is basically added into your "low" rate. This will be paid monthly for the life of the loan. Your APR, true cost of financing will be higher on FHA vs a 20% down conventional.
What is the 1.35 for? Either loan I take, I do plan to cover the 20%.
Posted on 4/11/14 at 12:48 am to TigerFanatic1
1.35% for FHA.
If you are 80ltv conventional, no mortgage insurance.
If you are 80ltv conventional, no mortgage insurance.
Page 2 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News