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84020 : Real Estate Advice

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  • Home Buying3
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Activity 4
Fri Dec 18, 2015
Hi Tmcd23,

The best option is the standard monthly PMI because it's the only option that you can actually drop once you have 20% equity. Here's what I mean.

With the standard monthly PMI you can request to have it canceled for just the cost of an appraisal and as long as your appraisal shows you have 20% equity the PMI will be canceled.

On the single pay PMI you pay a lump sum upfront that is nonrefundable so even if you pay down the balance by 20% the next day you'll never recoup that money. It's basically the same thing with the LPMI or lender paid PMI. The PMI is built into your rate so the only way to change or reduce that is to refinance the loan which is going to cost you thousands of dollars and you have no idea what rates will be at that point.

Seems pretty clear to me that the standard PMI option is the best way to go.

Take a look at the recommendations from some of my past clients on my Trulia profile by clicking the link below my phone number.

Please feel free to contact me for more information or help.

John Burke
Senior Mortgage Banker
Lending in ALL 50 states
Great Plains National Bank
Apply Online:
NMLS# 787231
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Wed Apr 30, 2014
Dana Anghel answered:
While there are some assistance programs for first time home buyers, there really isn't a specific loan program. You will get either a conventional or government loan. If you're looking for something with no downpayment, it would have to be either a VA loan, or and FHA loan through Utah Housing Corp (which is a downpayment assistance program). With 3.5% down you can get an FHA loan, and with 5% down you can get a Conventional. USDA rural loans are also no downpayment loans, but Salt Lake will not be eligible - you will need to look for a property in an eligible rural area.
You can read more about different loan programs on my website, and contact me with your questions.
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Thu Nov 13, 2008
Khayyam Jones answered:
when you purchase a home the bank/lender considers the purchase price (or the appraised value, which ever is less) as the value of your home. a 3% down payment means that the loan-to-value ratio is 97% as far as the bank is concerned. after 1 year you can refinance or have the property appraised and if your loan-to-value is less than 80% (greater than 20% equity) then you can get the pmi removed (conventional loan only, fha always requires pmi). ... more
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