Mylisali did you look into doing an FHA loan. The mortgage insurance is cheaper with less money down. I also can do the loan with 1 yr worth of W2s. Call me 1800-735-0525 x 6304H. Duante DuckettSr. Loan Officer

The MI isn't cheaper with FHA when you factor in that you are paying 1 point upfront for the FHA MI and then the monthly factors are very close. Your lender can go to MGIC's website and print you out a FHA vs PMI comparison chart, he can give you up to 4 options on this comparison chart. FHA, Regular Borrower Paid MI, The split MI product that I mentioned earlier and an UPfront MI premium.The website link for MGIC's MI Options Calculator ishttps://calculators.emagic.com/Calculators/servletThis analysis will show you where you will be in 5 yr , 7 yrs and the overall term of the loan.

The only question I would have for you are what is the lender charging you in points and other lender fees. He should have provided you with a Good Faith Estimate. Page 2 of the Good Faith Estimate will break down the lender fees,Go to your adjust origination fees on the top of the page. Box one will tell how much the company is making on your deal, Box two if thier is a negtive # will tell you that the lended is paying the broker, Box A will tell you how much in fees that you are paying to the lender out of your pocket. The other 3rd party fees don't go to the lender and everyone is going to charge these fees. PMI did he tell you the PMI factor or are you looking at the amount of the PMI payment? The lender doesn't make any money on the PMI at all. THe PMI factor for a loan in the 90 to 95% ltv range should be about .94 depending on which MI company is willing to insure the loan. Take your loan amount call it $410.000 times .0094= 3854 / 12= monthly pmi payment of 321.Post the fees her and then we can tell you if you are getting a good deal or not. The rate does sound good but it all depends on what fees you are paying.With the MI thier is a product called split edge, where the lender can charge you a slighly higher rate but then reduce you MI payment in half, he would basically buy your MI factor down for you, if the seller is paying closing costs you can use 1 point from the seller paid closing costs to buy the rate down as well.

I recommend getting the seller to pay a portion of you closing cost and using those funds for a one time up front mortgage insurance premium that eliminates any additional monthly costs. There is some risk based pricing out there that will lower the amount based on your score. Or, perhaps you go to 95% financing and allocate the remaining funds to improve your monthly payment via a variety of ways including the rate, MIP or combo! That 2.5% is not going to lower your payment much when you compare the figures.

You should be OK , it may depend on what your work history was prior? You could go FHA or Conventional with PMI. In Temecula there are a lot of forclosures as well so the Homepath program may be available (no MI required). We are a direct lender in San Diego. Feel free to call to discuss any options.Brian McFedries858-405-5094

FHA would be your only viable choice with 5% down instead of 3.5% your MI would be less. You can't be too picky about rate and mortgage insurance with your scenario. The assessment does not have anything to do with today's value. .... Happy funding, Rudi