Mortgage Shopping

Where are you?

Putting 20% down largely depends on where you are trying to buy and how competitive the market is at the time. I live in Houston and over the past 2 years sellers wouldn't even consider offers that were not putting at least 20% down. That has nothing to do with you paying PMI, it's a sellers preference. Buyers putting 20% down, or much more down (or all cash), are stronger offers and will be favored.

Those days may be dwindling though. I suggest also discussing the amount you want to put down with your real estate agent (if you trust their opinion). They will usually have good insight too.

You can pay your MI up front which sometimes is a better deal than paying monthly until you get to 20% - I would have to quote both options and see what your timeline to live in the house. If you plan to sell in the next five years, it might not be worth it. As for another rate quote, I can give you one if you are in LA or MS. Im typically less than most because I do not have a branch override fee. You can reply here or email (username @gmail.com) your credit score, and estimated house value. This would only be an estimate because I could not guarantee a rate until I had your contract and a complete application.

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Also, I can, but really don’t want to put down 20%

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You won't get the best interest rate available (posted) without the 20% down.

Lenders don't really tell you that, but once you get your first loan estimate it will become clear :)

This is incorrect- Investors give better rates to loans with MI because it is considered "less risky"

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This is incorrect- Investors give better rates to loans with MI because it is considered "less risky"

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Not in my experience. The last loan I did my interest rate went down to half a percentage point (from 3.625% to 3.125%) because I changed my down payment amount from 19% to 20%.

To each his/her own maybe.

Question if I qualify with one and lock in a rate, can I continue to shop rates until closer to closing?

I asked the broker if rate decreases prior to closing if I can lock that in and she said it has to be a .25 drop.

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Houston your property taxes are going to frick you more than anything.. PMI is the least of your concerns.

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Yup… well taxes, insurance not too bad. In an X zone. Only place I’ll ever buy. Every house I’ve ever bought is this way and I’ve never had flood.

Well if we have any brokers who deal in Texas that want the make a run at this, please let me know.

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You won't get the best interest rate available (posted) without the 20% down. Lenders don't really tell you that, but once you get your first loan estimate it will become clear :)

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Not true at all. I got offered the same rates at 5% down and then I recast to put down 20% when my other house sold.