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Robert Chomentowski's Blog

By Robert Chomentowski 858-922-7899 | Mortgage Broker
or Lender in San Diego, CA

10% Down Conventional Loans With PMI Is A "Sweet Spot"

If you are not going to go all the way and put 20% down, a 10% conventional loan is a real "sweet spot" in the mortgage market right now.  Why do I think that?   Because you are putting less than 10% down, but getting very low private mortgage insurance (PMI) rates.  

10% down with PMI is a much better option than FHA if you can swing it.  FHA just raised their mortgage insurance premiums and now they require 1.75% up front mortgage insurance and 1.25% monthly mortgage insurance.  By comparision if you have good credit, 10% down conventional has NO up front mortgage insurance and as low as .44% monthly mortgage insurace.  On a $350,000 FHA loan, you would have $6,125 up front mortgage insurance and $364 monthly mortgage insurance.  With 10% a down conventional $350,000 loan you would have NO up front mortgage insurance and as low as $128/mo monthly mortgage insurance.  Wow that's a huge difference isn't it!

Read more at: http://sandiegomortgageblog.com/conventional-loan/10-down-conventional-loan-with-pmi-a-great-option/ 

10% down conventional loans can have tighter underwriting guidelines with regards to credit scores and debt-to-income ratios, this is why some borrowers will still go FHA.  

I hope this helps you understand private mortgage insurance a little better and feel free to call me at 858-922-7899 or email me at homeloan8@gmail.com if you have any questions.


Rob Chomentowski

Sr. Loan Officer

Affinity Financial



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