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Buying my first house **update** offer accepted, I got a house.
knave:
PMI insurance really sucks...it adds to the amount you have to pay each month but is not part of the loan. A good morgage broker can usually find you a loan without it.
really it is the banks way of charging you more because you might not pay your bills. I think it's bunk. So check with a good broker. Preferably one who knows good appraisors.
As for the selling agent. A good one can be truly great. However, Most likely if it's not your agent then they don't have your best interests in mind. Plus like folks here have said if you get your own agent the two share any commision so no money out of your or your families pockets.
You can bring in a new agent at any time. I also advise you to check out some other loan sources... PMI really sucks.
lordtodd75:
My apologies to the BYOAC elite. Chad can't you find someone else's thread to pad your post count. I also don't appreciate the name calling. We all are adults here, yes?
Shardian I took offense to your post, maybe I shouldn't have but everything has been so crazy. I did do research. I read 2 books and I spent countless hours pouring over websites and talking to people in the industry. I think there were some misunderstandings between you and I about the PMI thing. I put a 3 percent downpayment on my home. There is a fee in my good faith estimate from the mortgage broker called PMI Premium, it is under the "mortgage origination costs" and is roughly $2600.00(this is roughly 1.5% of my purchase price). I also noticed this fee is not due at closing, but it is added to my purchase price of the home. In the same estimate I noticed there was also a monthly fee for PMI of $70.00. From what I understood some people opted to pay for there PMI up front, so they didn't have a monthly fee, which would explain the $2600.00. I was simply wondering why I had the big up front fee for PMI as well as the monthly payment.
I found out this is all standard for an FHA loan. FHA makes there money by selling there PMI insurance to people who get an FHA loan. They say the up front fee is so you can have a lowered monthly PMI payment. FHA also lets you finance the up front PMI fee so your closing costs won't go through the roof. I hope that was a little more clear.
ChadTower:
--- Quote from: lordtodd75 on February 14, 2008, 03:17:04 pm ---My apologies to the BYOAC elite. Chad can't you find someone else's thread to pad your post count. I also don't appreciate the name calling. We all are adults here, yes?
--- End quote ---
I had been in here advising you on issues for which you requested advice. I won't make that mistake again. Good luck with your house.
zaphod:
I actually learned something from this thread. I had no idea FHA got you both ways on PMI (or MMI) when you put down less than 20%. For clarity I googled and came up with this thread: http://origin.bankrate.com/brm/news/DrDon/20040928a1.asp
Something I found out when I refied my house some years ago is that PMI rates are tiered. 95% is one rate, 90% is lower, 85% lower still, 80% non-existent. Whatever rate you start with is the one you stick with until you either refinance or reach the 20-22% ownership. It made a large difference whether I paid 10% or 15% (20% was no feasible at that point).
shardian:
By you saying they are tacking it onto the price of the home, do you mean that it will be included in the interest calculations?
Anyways, there was another option that was presented to me when I was doing mortgage calculations. The fact you haven't mentioned it makes me even more suspicious of your mortgage broker. If your budget allows, you can get a 2nd mortgage for the down payment. For instance, if you had 5% to put down you could do an 80/15/5 mortgage plan. This will get you out of paying PMI, and of course the interest on both loans is tax deductible - PMI is NOT tax deductible. So I guess my question is two fold: would this be a viable option and did the mortgage broker even tell you about it?
No harm no foul on the offense thing. I shouldn't have made the offending comment.
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