I am buying a house, and putting down 10.04%.

Asked by Manisha Gupta, Phoenix, AZ Sat Jun 28, 2008

My lender ( A credit Union) are buying PMI for me and they are buying 25% coverage
reducing their exposure to 65%.

The same PMI insurance provider provides 17% coverage which will reduce their exposure to 75% and that will cost me less.

I think they should buy less coverage which is about $16 less per month as I am paying for it and it is not necessary to buy 25% on top of my 10 % down payment.

please advise if they shuld buy less coverage or more?

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7
Tonje Kearney, Agent, Scottsdale, AZ
Sun Jun 29, 2008
John is right, definitely get a couple of more quotes from lenders, your credit union is being overly cautious. When you shop around though, make sure that the other lenders will match the credit unions interest rate. Usually Credit Unions give you better rates than other lenders.
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0 votes
John Gordon, Agent, Mesa, AZ
Sun Jun 29, 2008
Sorry you did not get the whole answer as well..

Based on what you say below I REALLY think you need to talk to a different lender than your credit union. They may look out for your interests in other aspects but apparently not here.

If you want, contact me and I will get you more lenders names than you can imagine. ( I keep cards in files!)

Have a great weekend, and whatever you do get another (or multiple) opinions.
0 votes
Manisha Gupta, Home Buyer, Phoenix, AZ
Sat Jun 28, 2008
Sorry, John for all the typing you lost, and so I lost a detailed answer.

This is a foreclosure in Phoenix a Perfect condition ( give 5000 and it is) and LTV based on appraisal is 60%.

LTV based on buying price is 90 %.

And it will be my primary residence, and I have good and unblemished credits above 700.

This overcautiousness is not justified in this case, I think.
0 votes
Mr.P, , Arizona
Sat Jun 28, 2008
Where and what are you buying?
0 votes
Maria Morton, Agent, Kansas City, MO
Sat Jun 28, 2008
John is right, they are trying to protect themselves due to the amount of losses sustained by mortgage lenders recently. Another lender may offer a better deal. Shop around; choose wisely. Ask your agent's opinion for local resources.
0 votes
John Gordon, Agent, Mesa, AZ
Sat Jun 28, 2008
I sent a very long answer, but the question was removed..

In a nut shell, contact 2-4 other lenders for a second opinion. I think they are being overly cautious at your expense. But with the amount of foreclosures who can blame them.
0 votes
John Gordon, Agent, Mesa, AZ
Sat Jun 28, 2008
All that typing and you pulled the question!
0 votes
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