Forgotten Your Password?

Need to Register?

Question Icon

I want to avoid having to pay PMI, is the only way to have 20% down?

by kelcie828 from Ordway, Colorado. Apr 1st 2016 Reply


Jason Stoeser (JasonStoeser)
#273 ranked lender in California - 17 contributions

There is no way to avoid PMI if you pay less than 20% down payment. There is an option for a Lender Paid MI option, but there is still MI. If you take the Lender Paid MI option, the interest rate will be higher.

Apr 1st 2016
1
0
Kay Cleland (kay@kcmortgagecolorado.com)
#32 ranked lender in Colorado - 215 contributions

You can do less than 20% down and we can do the Lender Paid MI option. You will eliminate your monthly mortgage insurance , but your rate will be a little higher but sometimes your payment is lower. Call me if you would like me to help you. I am here in Colorado. Call Kay 720-670-0124

Apr 1st 2016
1
0
Allen Lundberg (ColoLender)
#21 ranked lender in Colorado - 24 contributions

You can also consider a 1st and 2nd mortgage combination as well as the lender paid mortgage insurance option that was mentioned in the previous post. There are some pros and consto this option, but the minimum down payment could be around 10%. Feel free to reach out if you would like more information. Allen 720-203-9871

Apr 1st 2016
1
0
William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

Correct... unless you put 20% or more down, you will have MI.. There are many types of MI, but regardless of how it's sold to you, it's YOU paying it.. There's "Lender Paid" MI, but this just means the lender charges you a higher interest rate and then pay's the premium for you.. There's "Upfront" MI, which is a single premium you pay upfront and then there is no monthly MI.. This premium can be paid by you or the lender, but if the lender pay's it, they will raise the rate and use the extra profit to pay the premium for you, but make no mistake, in every scenario, it's YOU paying.. either in the form of a higher interest rate or by bringing in more cash to the table, or by adding it to your payment.. Understand that the least expensive way to go is for you to PAY PMI MONTHLY.. If you choose any other type of MI, it's non cancelable and non refundable.. The only way to remove Lender paid MI is to refinance.. and if you pay the upfront single premium MI, it's not refundable.. but if you pay monthly,, then once you have paid for 2 years, and once you have reached 20% or more equity, you can contact your lender and request the PMI be removed.. they will charge you for an appraisal, but so long as the value is there, they will remove it and you wont have to refinance to do it.. 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

Apr 1st 2016
1
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

If you put less than 20% down, you need to deal with PMI somehow. The most common is standard monthly mortgage insurance. Next is lender paid mortgage insurance, where you still have it, but now it isn't paid monthly. Many places fool people with this option, pretending "you don't have it". But you do, and it was paid for with a higher interest rate. Then you can have borrower paid, where again you still have it, but it isn't paid monthly, instead you pre-pay 3-years worth up-front in cash at closing for it. Finally, is the split loan (80% first, and then a second mortgage). This used to be popular, but isn't used as often as before because it the other options are bit better than they used to be, and the split loan is a bit worse than it used to be. Bottom line, is most people should ask about the various options - but a good Loan officer will have already told you about them.

Apr 4th 2016
0
0
Subscribe to our news feed.