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Conventioanl Loan / PMI / Home Buying Questions
Posted on 6/19/13 at 10:51 am
Posted on 6/19/13 at 10:51 am
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%
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 6/19/13 at 10:54 am
2
Posted on 6/19/13 at 10:58 am to CQQ
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
Posted on 6/19/13 at 1:51 pm to hawkeye007
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?
Posted on 6/19/13 at 2:19 pm to CQQ
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
Posted on 6/19/13 at 2:22 pm to CQQ
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
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%
Posted on 6/19/13 at 2:40 pm to hawkeye007
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
Posted on 6/19/13 at 2:45 pm to lsupride87
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%?
Posted on 6/19/13 at 2:48 pm to CQQ
quote: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
Thank you sir. Will PMI still be about that amount if we put down 10%?
Eta: All of these estimates are for a credit score of 752 with a 4% interest rate
This post was edited on 6/19/13 at 2:50 pm
Posted on 6/19/13 at 2:51 pm to lsupride87
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?
Posted on 6/19/13 at 2:52 pm to CQQ
quote: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
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?
This post was edited on 6/19/13 at 2:53 pm
Posted on 6/19/13 at 2:53 pm to lsupride87
You're a good man 
Posted on 6/19/13 at 2:56 pm to CQQ
quote:Not a problem, I just went thru this exact process. Fire away any more questions if you have them
You're a good man
Posted on 6/19/13 at 3:01 pm to lsupride87
Is this the route you took, paying PMI up front? 5% down?
Posted on 6/19/13 at 3:10 pm to CQQ
quote: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
Is this the route you took, paying PMI up front? 5% down?
Posted on 6/19/13 at 3:10 pm to lsupride87
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.
Posted on 6/19/13 at 3:13 pm to Hu_Flung_Pu
quote: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
Why is this? I have mine in savings and was just going to transfer a week before.
Posted on 6/19/13 at 3:16 pm to CQQ
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
Posted on 6/19/13 at 3:18 pm to hawkeye007
quote: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
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 post was edited on 6/19/13 at 3:19 pm
Posted on 6/19/13 at 3:23 pm to lsupride87
knowing the break even point is key, also if you can put down 13% that up front PMI charge drops by 2k also..
Posted on 6/19/13 at 3:23 pm to hawkeye007
quote:Yep, i just didnt have the funds to do it
knowing the break even point is key, also if you can put down 13% that up front PMI charge drops by 2k also.
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