Home Buying in West Milford>Question Details

Beth Ann, Other/Just Looking in 07462

A 20% down payment would wipe out my savings. Is there any way these days to avoid PMI without a 20% downpayment?

Asked by Beth Ann, 07462 Wed May 22, 2013

I have good not great credit.

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9
The best thing to do is contact a good Mortgage Lender. NJ Lenders is the one I always refer to. There is still the USDA loans for people with excellent credit (this is where you don't have to put any money down, just closing cost) and may qualify. Some mortgage companies might take a 10% down to avoid PMI
0 votes Thank Flag Link Thu Dec 12, 2013
There are lenders who will offer loans without PMI with as little as 5% down. The interest rate is typically 3/8 of a percent higher than the going rate so today it would be around 4%.

This is much less expensive than PMI.
0 votes Thank Flag Link Thu May 23, 2013
Pmi can be eliminated after a year if you can build equity or add value to your new home. speak to a mortgage pro.
0 votes Thank Flag Link Thu May 23, 2013
Pmi can be eliminated after a year if you can build equity or add value to your new home. speak to a mortgage pro.
0 votes Thank Flag Link Thu May 23, 2013
Best Advice is to Call Mark Johnson with Gateway Funding. His number is 201-819-7699. There is an option called LPMI Which means Lender Paid Mortgage Insurance. You basically roll it into the rate but your rate does go up alittle bit. Good news is its a write off at that point. Give him a call and he can explain it in more detail and Give me a call if you need an agent to find the right home for you. Thanks

Mark Werner
Werner Realty
973-657-1400
http://www.searchnorthjerseyhomes.com
0 votes Thank Flag Link Wed May 22, 2013
Speaking with a mortgage representative will give you the information you are seeking. They have different programs based on your qualifications.
0 votes Thank Flag Link Wed May 22, 2013
Hi Beth, The best advise is talk to a well versed mortgage representative to review your options. They are up to date on all mortgage program available and will match you with one you are comfortable with.
Please feel free to reach out to me and we can get you the current information from a professional.

Thank you for your question.
Donna Wright
Re/Max Country Realty
848-992-0187 cell
0 votes Thank Flag Link Wed May 22, 2013
You are best to consult a mortgage professional. PMI is a sore spot for many, but in retrospect, the lender is shelling out a lot of money on the loan, and is looking to be compensated for it. Today, with the new laws, you cannot simply get a new appraisal in two to three years, after gaining 20% equity in your home, and get the PMI removed. However you can always refinance down the line. If your credit is excellent, you can put as little as 5% down on a conventional loan, with a bit less PMI. Either way, even with PMI, today's low interest rates, and affordable home prices makes purchasing a home so sensible. And, with the write-off gained at tax time, it makes even more sense to purchase a home at this time.
0 votes Thank Flag Link Wed May 22, 2013
While PMI would be required for anything less than 20% down, you should know that the average downpayment right now is only 3.5% down. The market right now is quickly turning around with quite a lot of activity right now. Other factors to consider in your overall decision would be the benefit of getting in at rock bottom values, and historically low mortgage interest rates. As property values are now starting to increase again, you should realize that the long term investment may payoff much better to buy now with PMI, than to wait and risk increased mortgage rates. Most programs (not all) with PMI will allow you to drop the PMI once you have achieved 20% equity whether through paydown of principle debt, or by property appreciation (a small appraisal fee may be required). I would be happy to discuss further options with you if you have any other questions.

Dave Fenwick
Weichert Realtors
973-809-0613
0 votes Thank Flag Link Wed May 22, 2013
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