Home Buying in Durham>Question Details

Keith O'hare, Home Buyer in 27713

How much will a 3.2% APR (7/1 ARM) go up if I only have 10-15% down instead of 20%?

Asked by Keith O'hare, 27713 Tue May 12, 2009

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It may not go up at all except for the fact that you will have a separate Mortgage Insurance payment on the loan. However, a lot of lenders do not hit the interest rate if you pay the separate MI payment - which will fall off as soon as the loan to value of the home equals 80%.

However, if you wanted to roll MI into the rate itself, I typically see about a .5% rate increase to include MI. Thereby, your rate would be approx 3.7%

If you have any questions, feel free to call me.
Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com
0 votes Thank Flag Link Tue May 12, 2009
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