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CQQ
LSU Fan
Member since Feb 2006
17045 posts

Conventioanl Loan / PMI / Home Buying Questions
With a conventional loan, how much will PMI be up front? Also, what is the minimum down payment/credit score to be approved? Also, what are the estimated closing costs on a home around $260,000?

Basically, to pay PMI up front, how much will it take out of pocket to get into a house in this range?

ETA - I'd like to put down at least 10%
This post was edited on 6/19 at 10:54 am


hawkeye007
LSU Fan
Member since Feb 2010
4007 posts

re: Conventioanl Loan / PMI / Home Buying Questions
you need a score above 680 to make a conventional loan look attractive compared to FHA. You will need a min 5% downpayment. PMI is not charged upfront on conventional loans it's is charged monthly. Closing cost are comprised of 3 catagories, lender cost(what the bank or lender charge you to do the loan) title company cost, and escrow deposit(15months of homeowners insurance is required at closing and depending on what month you close will determine how many months of property tax you will need to pay)..yea i know i just gave you a crap load of info..call a banker and get pre-approved


CQQ
LSU Fan
Member since Feb 2006
17045 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

PMI is not charged upfront on conventional loans it's is charged monthly.


I know it's normally charged monthly, but can't you pay it up front?


hawkeye007
LSU Fan
Member since Feb 2010
4007 posts

re: Conventioanl Loan / PMI / Home Buying Questions
you can the amount charged is based on LTV and credit score. The upfront MI charge can be financed into the loan amount so it doesnt have to come out of your pocket


lsupride87
LSU Fan
River Ridge
Member since Dec 2007
61671 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

With a conventional loan, how much will PMI be up front? Also, what is the minimum down payment/credit score to be approved? Also, what are the estimated closing costs on a home around $260,000?

Basically, to pay PMI up front, how much will it take out of pocket to get into a house in this range?

ETA - I'd like to put down at least 10%
I can help you here. On a home with a purchase price of $250,000 with 5% down, up front PMI will be $4,180. Total cost at closing(including $12,500 down payment, all insurance, Pmi, etc) is $25,000


CQQ
LSU Fan
Member since Feb 2006
17045 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

The upfront MI charge can be financed into the loan amount so it doesnt have to come out of your pocket


I want it to come out of my pocket


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CQQ
LSU Fan
Member since Feb 2006
17045 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

I can help you here. On a home with a purchase price of $250,000 with 5% down, up front PMI will be $4,180. Total cost at closing(including $12,500 down payment, all insurance, Pmi, etc) is $25,000


Thank you sir. Will PMI still be about that amount if we put down 10%?


lsupride87
LSU Fan
River Ridge
Member since Dec 2007
61671 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

Thank you sir. Will PMI still be about that amount if we put down 10%?
It will be less, but it will remain in the 3700- 4200 range. If you dont do it up front it will be around 100-150 a month

Eta: All of these estimates are for a credit score of 752 with a 4% interest rate
This post was edited on 6/19 at 2:50 pm


CQQ
LSU Fan
Member since Feb 2006
17045 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

If you dont do it up front it will be around 100-150 a month


This is what I want to avoid

quote:

All of these estimates are for a credit score of 752 with a 4% interest rate


I had a blemish a year or so ago. I don't think I'll be there by the time we're ready to buy. What about a score around 700?


lsupride87
LSU Fan
River Ridge
Member since Dec 2007
61671 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

I had a blemish a year or so ago. I don't think I'll be there by the time we're ready to buy. What about a score around 700?
Should still stay in the ballpark of the numbers I gave you. Just make sure your down payment amount is in your account for 60 days prior to closing
This post was edited on 6/19 at 2:53 pm


CQQ
LSU Fan
Member since Feb 2006
17045 posts

re: Conventioanl Loan / PMI / Home Buying Questions
You're a good man


lsupride87
LSU Fan
River Ridge
Member since Dec 2007
61671 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

You're a good man
Not a problem, I just went thru this exact process. Fire away any more questions if you have them


CQQ
LSU Fan
Member since Feb 2006
17045 posts

re: Conventioanl Loan / PMI / Home Buying Questions
Is this the route you took, paying PMI up front? 5% down?


lsupride87
LSU Fan
River Ridge
Member since Dec 2007
61671 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

Is this the route you took, paying PMI up front? 5% down?
Yep. Basically, if you are not going to invest the upfront PMI money and you plan on staying in the house at least 4 years, pay the PMI upfront and you will save thousands in the long run


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Hu_Flung_Pu
USA Fan
Central, LA
Member since Jan 2013
18963 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

Just make sure your down payment amount is in your account for 60 days prior to closing


Why is this? I have mine in savings and was just going to transfer a week before.


lsupride87
LSU Fan
River Ridge
Member since Dec 2007
61671 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

Why is this? I have mine in savings and was just going to transfer a week before.
As long as it is in a savings account under your name at a bank thats fine. But if its in a coffee can at your house they will still consider it a "gift" and it will need to be seasoned for 60 days in your accounts


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hawkeye007
LSU Fan
Member since Feb 2010
4007 posts

re: Conventioanl Loan / PMI / Home Buying Questions
i had a few minutes so i ran some numbers for you..with 10% down and a score of 700 its going to run you between 4200-5300 up front to buy the PMI out...or $120 a month added to the note..in my opinion(i do this for a living) pay the PMI monthly..if you sell the house for some reason within the first 5 years of the home loan you are taking a loss because of the PMI


lsupride87
LSU Fan
River Ridge
Member since Dec 2007
61671 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

or $120 a month added to the note..in my opinion(i do this for a living) pay the PMI monthly..if you sell the house for some reason within the first 5 years of the home loan you are taking a loss because of the PMI
This is what i feel as well. In my case I know for a fact i will be there at least 3.5 years(which is my breakeven point) so it was a no brainer to pay it upfront
This post was edited on 6/19 at 3:19 pm


hawkeye007
LSU Fan
Member since Feb 2010
4007 posts

re: Conventioanl Loan / PMI / Home Buying Questions
knowing the break even point is key, also if you can put down 13% that up front PMI charge drops by 2k also..


lsupride87
LSU Fan
River Ridge
Member since Dec 2007
61671 posts

re: Conventioanl Loan / PMI / Home Buying Questions
quote:

knowing the break even point is key, also if you can put down 13% that up front PMI charge drops by 2k also.
Yep, i just didnt have the funds to do it


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