Home Buying in 02129>Question Details

Cjeff17, Home Buyer in Jefferson County, IL

Is it possible to buy a home in Boston with 5% down and avoid pmi? FICO is 788.... Income 135k... I really want the deduction and don't want pmi.

Asked by Cjeff17, Jefferson County, IL Thu Nov 3, 2011

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PMI will eventually drop off where lender paid PMI is paid by taking a higher interest rate for the entire length of the loan. The lender charges a higher rate and takes the extra profit from the yield and buys an upfront PMI policy. The holding period determines which route is better.
1 vote Thank Flag Link Fri Nov 4, 2011
Hi There,

As you can see from my colleagues' answers you do have options to purchase a home with 5% down (or even less if you can get FHA loan approval). And I agree with them that building a relationship with a local mortgage broker is critical to your success.

I'm a transplant to Boston (from Atlanta) and I now specialize in working with relocation clients. Many of my clients have been tremendously happy with the service they've received from Wells Fargo Home Mortgage. I would urge you to contact my friend and business colleague Cory Miller by phone at (617) 447-0103 or via email at cory.n.miller@wellsfargo.com.

If you'd like to engage my services as a Buyer's Agent for your long-distance home search, please feel free to contact me through my website at http://www.GoHomeWithMichael.com where you can register to receive free property listings or you can simply email me directly at mpallares@hammondre.com.

Good luck with your home search.

Michael Pallares
0 votes Thank Flag Link Fri Nov 4, 2011
It would be our recommendation to speak with a local mortgage professional that could advise you on best product for your situation. Our clients have had great success with Chris Downey at Harbor Mortgage Solutions. Chris can be reached at 781-843-5553 or on the web at http://www.harbormortgage.com Good luck!
0 votes Thank Flag Link Fri Nov 4, 2011
It is possible to get 5% down and avoid a separate PMI payment. We have available Lender Paid MI which the rate is increased to cover the MI cost. This option usually wil give you a lower payment if you just took the regular rate with a monthly PMI payment.

If you can get a seller credit for closing costs, that credit could go towards the cost of the MI and keep the rate lower.
0 votes Thank Flag Link Fri Nov 4, 2011

The short answer is yes. But I notice you are from IL and one of the criteria would be you would have to live in the property. I have had great success working with a guy by the name of Yauvan Kumar of Mortgage Masters. He works out of their South End office. Here's his contact info. My contact info is below his if you need anything else Good luck

Yauvan Kumar
South End Massachusetts Office
671 Tremont Street, Ste. 1
Boston, MA 02118
Phone: 617.606.3442
Fax: 508.355.8164
eFax: 617-395-2694

Jessie Cuddy, Realtor
Boston Bayside Properties
2253a Dorchester Avenue
Dorchester, MA 02124
cell: 617 875 7004
eMail: jessiecuddy@bostonbayside.com
Web Reference: http://www.jessiecuddy.com
0 votes Thank Flag Link Fri Nov 4, 2011
hello Jeff,
The most important criterion here is to find a property that is 5% down payment approved by lenders, or FHA approved. NOT all properties qualify.
Once you do:
You have a few options, but please pay attention to what you will be saving by not paying PMI and what you may be paying to avoid it. it can be tricky. Be very diligent here please.

*Option 1: get a second mortgage. This 80/20 option will help you avoid PMI, but the 2nd mortgage interest rate can be very high and costly.
*Option 2: Pay it up front and include it into the loan. with the low rates that we have and your good score, this can be a good option.
*Option 3: free after five. This option allows you to avoid PMI altogether after 5 years of excellent payments, provided that you are a good payment history with your lender.
*Option 3: LPMI: Lender Paid Mortgage Insurance. Lender may pay MPI for a small adjustment to the interest rate.
Please check with a qualified mortgage broker to see which option is best for you.
Please visit our website (link below) for available properties for sale in the Boston area. It is a free service. Should you require our services, please feel free to contact me directly.
0 votes Thank Flag Link Thu Nov 3, 2011
Honestly your best course of action is to speak with a mortgage broker and have them go over each of the loan options. It is the right place to start when you start the home buying process.
0 votes Thank Flag Link Thu Nov 3, 2011
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