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re: Will some banks let you eliminate PMI as soon as you reach 20%
Posted on 2/23/16 at 12:41 pm to recruitnik
Posted on 2/23/16 at 12:41 pm to recruitnik
quote:The average 401k size is actually about $90k, as of the end of 2014.
The vast majority of american workers.
LINK
If you're young then it makes sense to have less than $50k in your 401k. But most people who are that young aren't moving on to their second home purchase, so that shouldn't apply to the OP.
This post was edited on 2/23/16 at 12:43 pm
0
Posted on 2/23/16 at 12:42 pm to MontyFranklyn
quote:
it could screw up his DTI big time
True, if he is borderline on qualifying anyways.
Posted on 2/23/16 at 12:52 pm to gorillacoco
Wouldn't worry about it. You can refi at that point, if they won't drop it.
Posted on 2/23/16 at 12:55 pm to gorillacoco
quote:
want to dump all that equity into the new home (more than 20% of the new home value).
Is the other house the not paid off? Or are you buying a house worth 5 times what you currently have?
Posted on 2/23/16 at 12:58 pm to slackster
FHA doesn't have PMI it has MMI. Mutual Mortgage Insurance. Only newer loans require MMI the life of the loan.
Posted on 2/23/16 at 1:00 pm to gorillacoco
quote:
Wife and I are looking at buying a new house, but haven't sold the old one yet. We can maybe come up with 10% down on the new home without selling the old one, but as soon as we sell the old one I want to dump all that equity into the new home (more than 20% of the new home value). The bank is saying that we'll have to pay PMI for 24 months minimum, even if we sell the old house before then (which we will). Am I just dealing with the wrong bank? Any way around this?
Why not just enter a purchase agreement contingent on he sale of your current home? That's a pretty standard practice.
Avoid PMI at all costs.
Posted on 2/23/16 at 1:00 pm to bee Rye
nm
This post was edited on 2/23/16 at 1:06 pm
Posted on 2/23/16 at 1:00 pm to gorillacoco
don't bite off more than you can chew
how long can you pay 2 mortgages for?
doesn't seem prudent, unless of course you
are not strapped for cash
how long can you pay 2 mortgages for?
doesn't seem prudent, unless of course you
are not strapped for cash
Posted on 2/23/16 at 1:02 pm to CajunInFL
NFCU
30 year conventional
30 year conventional
Posted on 2/23/16 at 1:03 pm to WaveHog
nevermind, i don't know what i'm talking about. carry on.
This post was edited on 2/23/16 at 1:06 pm
Posted on 2/23/16 at 1:06 pm to East Coast Band
quote:
Yes, buy a house you can afford.
This makes no sense.
FHA will not allow you anymore so just refi out when you are at 80%
Posted on 2/23/16 at 1:15 pm to gorillacoco
I know credit isn't given out a freely as it once was, but have you given thought to a 75 - 80% first mortgage and a home equity loan for the diff? That was a fairly common way to get out of PMI for a while.
This post was edited on 2/23/16 at 1:16 pm
Posted on 2/23/16 at 3:37 pm to gorillacoco
Not sure if you can actually do this but you could take out a HELOC on your existing home to bridge the gap between your 10% down payment and the 20%. Then once you sell the house just pay down the HELOC.
Once again, it's possible your mortgage lender won't let you do that but it's one way to avoid PMI.
Once again, it's possible your mortgage lender won't let you do that but it's one way to avoid PMI.
Posted on 2/23/16 at 3:52 pm to retired trucker
OP is thinking absolutely correct.
He's saying he'll have enough cash to have 20% once the old house sells. Even without that cash, he still has 10%.
He is trying to avoid the scam that is PMI. He is also trying to avoid a second closing, or other associated fees. He should ditch the shifty lender he has, as I bet his credit is strong.
He's saying he'll have enough cash to have 20% once the old house sells. Even without that cash, he still has 10%.
He is trying to avoid the scam that is PMI. He is also trying to avoid a second closing, or other associated fees. He should ditch the shifty lender he has, as I bet his credit is strong.
Posted on 2/23/16 at 3:55 pm to Antonio Moss
Because some sellers will tell you to piss up a rope. In fact, most will.
Or, they'll take it and say fine, but the house is still on the market.
Or, they'll take it and say fine, but the house is still on the market.
Posted on 2/23/16 at 4:02 pm to gorillacoco
Don't do what I did. I put down 10%, then rates dropped. I attempted do get them to drop PMI when I was at the 15% range and would refinance then, but mortgage company (big company) would not remove PMI. Then a year or so down the road the original mortgage company called me saying if I refinanced with them I would pay cheap closing costs. I was at about 18% at the time. I refinanced and a few months later I was at 20%. I excitedly called the mortgage company to remove the PMI, and they said not until its been 24 months on the mortgage. I went ape shite and told them I had my mortgage with them since the beginning, but they said but its an entirely different mortgage and just because they are the same company it does not matter. I have lost out on about $3000 bucks because of this. 
I try not to think about it anymore as I still have good health.
To answer your question....no its not unusual to pay PMI for 24 moths...Look at my sorry arse!
I try not to think about it anymore as I still have good health.
To answer your question....no its not unusual to pay PMI for 24 moths...Look at my sorry arse!
This post was edited on 2/23/16 at 4:04 pm
Posted on 2/23/16 at 4:06 pm to Mariner
Which is why PMI is a scam, as is FHA.
Go conventional, work a short term loan, but be smart and avoid PMI.
Go conventional, work a short term loan, but be smart and avoid PMI.
Posted on 2/23/16 at 4:09 pm to N2cars
I went with PMI when I originally bought the house because you could write it off. My realtor never recommended going with PMI in the past but did for me because it could be written off.
I am staying put until I have 20% cash to upgrade to my next house.
I am staying put until I have 20% cash to upgrade to my next house.
This post was edited on 2/23/16 at 4:10 pm
Posted on 2/23/16 at 4:16 pm to rdw1690
Not sure if you can actually do this but you could take out a HELOC on your existing home to bridge the gap between your 10% down payment and the 20%. Then once you sell the house just pay down the HELOC.
that worked for me, but I had a lot of equity in the existing house. Just had a couple of months with both houses, but lots much cheaper than PMI
that worked for me, but I had a lot of equity in the existing house. Just had a couple of months with both houses, but lots much cheaper than PMI
This post was edited on 2/23/16 at 4:20 pm
Posted on 2/23/16 at 4:51 pm to gorillacoco
You can still do an 80/10/10. You put your 10% down. Get a 2nd for 10% that you will pay off with the sale of your house and have a first lien for 80%.
In fact, the way loan pricing is structured, you are better off doing 75% first, 15% 2nd 10% down if you can get that much out of your house.
Sell your house, pay off the 2nd. Only have the first left at a locked in, low rate with no MI.
In fact, the way loan pricing is structured, you are better off doing 75% first, 15% 2nd 10% down if you can get that much out of your house.
Sell your house, pay off the 2nd. Only have the first left at a locked in, low rate with no MI.
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