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Credit score in the 700's and have enough for 5% down, but looking for an option to purchase without mortgage insurance.

by henry845 from Atwood, Colorado. Jun 23rd 2016 Reply


Are you eligible for VA financing? If you are, that would be a great option for you. If you are not, the best option available would be to pay a single premium insurance policy. You make a one time payment at closing and then don't make monthly insurance payments. Give me a call and I would be happy to give you more information. Allen - 720.293.9871.

Jun 23rd 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

I constantly see people asking about getting a mortgage without having to pay MI.. but information is power!! Right? Here's the reality.. unless you have VA benefits available to you, then without 20% down, you will pay mortgage insurance.. regardless of how the loan officer pitches it to you.. With MI.. there are several types.. there's "Single Premium Upfront" MI, this is where you pay a one time fee and it's good for the life of the loan.. There's "Lender Paid Monthly" MI, this is where the lender raises the interest rate and then pay's the monthly MI for you.. then there's a "Split Premium" where you can do a combination of monthly and upfront.. and then there's "Borrower Paid" MI.. But in ever one of these scenarios, it's YOU paying.. either in the form of a higher loan amount, or a higher interest rate, or by paying monthly, but again.. it's you paying.. and with the exception of borrower paid monthly MI,, all of these policies are non-cancelable and non refundable.. the only way to remove the MI would be to refinance.. But here's the reality.. With a 760+ credit score, 5% down, 30 year fixed rate mortgage, the monthly MI is about $34 per month for every $100K financed.. and once you have paid for 24 to 36 months, and once you have reached 20% equity or more (supported by an appraisal you pay for), then the lender will drop the MI, and you wont have to refinance to do it.. That's ONLY $34 per month for $100K financed.. When you compare all other options, including doing a 80% first, 15% 2nd and 5% down.. you will always come out ahead by PAYING MI.. it really is the lest expensive way to go... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Jun 23rd 2016
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Jimmy Stewart (jimmystewart@nocohomes.net)
#124 ranked lender in Colorado - 2 contributions

Hi Henry,You might want to look into a USDA Loan or a VA Loan. I am a Realtor, not a lender but can get you connected with some good honest resources. Give me a shout at 970-290-3755

Jun 23rd 2016
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Jimmy Stewart (jimmystewart@nocohomes.net)
#124 ranked lender in Colorado - 2 contributions

Hi Henry,You might want to look into a USDA Loan or VA loan. I am a Realtor, not a lender but can connect you up with some good honest resources. Give me a shout at 970-290-3755

Jun 23rd 2016
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Tyler Smith (tyler@webrokerloans.com)
#107 ranked lender in Colorado - 2 contributions

Henry, There are options to purchase using a Lender Paid Mortgage Insurance (LPMI) Loan and a hybrid between the LPMI loan and the Borrower Paid Mortgage Insurance (BPMI) Loan which is called split edge Mortgage Insurance. If you would like to discuss these options feel free to give me a call and we can discuss them in detail. Thanks, Tyler - 303-489-5122

Jun 23rd 2016
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Allen Lundberg (ColoLender)
#21 ranked lender in Colorado - 24 contributions

Are you eligible for VA financing? If you are, that would be a great option for you. If you are not, the best option available would be to pay a single premium insurance policy. You make a one time payment at closing and then don't make monthly insurance payments. Give me a call and I would be happy to give you more information. Allen - 720.293.9871.

Jun 23rd 2016
0
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