justin.hood, Home Buyer in San Diego County, CA

Are there any mortgages available where PMI doesnt have to be paid with only 10% down payment.?

Asked by justin.hood, San Diego County, CA Mon Dec 3, 2012

Purchase Price = 550000

Down Payment = 50000 (10%)

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Answers

3
There ARE, however, you probably dont want it... Reason being, anytime you are over 80% LTV, there IS PMI. (unless you can purchase using VA, which would be best case).

So, whenever a lender says that there is NOT mortgage insurance and you are doing only 10% down, it means one of a couple things. A) it is rolled into the interest rate, or B) you are prepaying it.

PMI as a monthly payment can be removed after 2 years and with 20% equity. Therefore, why would you take a HIGHER interest rate for the entire 30 year term of the loan, when you could remove it in 2 years?

The only situation where it makes sense to do a lump payment is if the seller is paying it FOR you, essentially buying out your PMI.

These tactics are good "marketing terms" ie: "we have no PMI", but in reality you are best served taking a lower interest rate and PMI that you can remove after 2 years with 20% equity...

Daniel Lehman
858-345-4725
1 vote Thank Flag Link Tue Dec 4, 2012
Prime Lending offers such a product. Give Gary Twitchel a call at 714-342-1664.
Good luck,
1 vote Thank Flag Link Mon Dec 3, 2012
Yes, you have what is called lender paid mortgage insurance (LPMI) that is rolled into the rate (.25% to .375% higher interest rate), or the one-time upfront payment. Rates are so low right now that I would recommend a program that is rolling it into the rate. When you factor in the tax implications, you aren't paying that much more.

René De Blanco

P. 619-610-9882
F. 619-810-1654
E. Rene.DeBlanco@BluFi.net
_______________________________
BluFi Lending Corporation
1450 Frazee Road, Suite 301
San Diego, CA 92108
0 votes Thank Flag Link Wed Jan 16, 2013
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