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depends if you're putting money down or not....because you will need to worry about the PMI.
par rate is at 5.875% with 1 origination fee.....you should keep on lookin for another lender...cuz 6.25% is high!
(this also depends on your loan amount, and value of home/purchase price)
Quote:
Originally Posted by omamia
Good to know.....
Thanks for redirecting me, sorry to reinvent the wheel.
Still deciding between a Pen Fed 5/5 ARM at 5% with .5 points or a 30 yr arm at 6.25 with 1 origination fee. Yikes this is a tough decision.
Try looking at the LPMI (Lender paid PMI)...they have really good rates for 1loan 90% financing. The payment is usually lower than the 80/10.
If you gain a lot of equity ...you will need to refinance the whole mortgage...or refinance the 2nd only. 2nd mortgage rates arent going to drop in the 6% range anytime soon....
Quote:
Originally Posted by omamia
Talked to a reputable broker today and I think a 80/10/10 is the best way to go.
We can re-fi just that second mortgage right? If we gain equity on the house we could try to just knock out that higher rate?
Hopefully, going to lock in tomorrow before the Fed meeting. Thanks for all your help with this.
Wasn't there a bond market knee jerk reaction of lower mortgage rates after the last rate cut? Then rates bounced back? Think this might happen again or was this just because they lowered it more than expected?
Also, can the OP also go with 1 loan with PMI (still deduct PMI) and if his home appreciates enough request PMI to be removed...without having to refi anything? I know it's a pain to get PMI removed, but it's a whole lot cheaper than refinancing, and more certain than if rates are higher when he decides to refi out the second.
Plus it's a hedge against if the home declines in value (of great concern in the next 2-3 years), if it declines and he goes to refinance, he will get worse terms as his LTV will be higher. No?
depends in the area they're purchasing. he would need a 12% increase to get to 78%....(most lenders make you sign the document for 78% not 80%).
it will take 2-3yrs before it goes under 80%.
this is why i recommend to find out about the LPMI....sometimes it's 0.25% higher than the normal rate...and they wont have to worry about congress taking away the PMI tax deductions
Quote:
Originally Posted by GregTraub
Wasn't there a bond market knee jerk reaction of lower mortgage rates after the last rate cut? Then rates bounced back? Think this might happen again or was this just because they lowered it more than expected?
Also, can the OP also go with 1 loan with PMI (still deduct PMI) and if his home appreciates enough request PMI to be removed...without having to refi anything? I know it's a pain to get PMI removed, but it's a whole lot cheaper than refinancing, and more certain than if rates are higher when he decides to refi out the second.
Plus it's a hedge against if the home declines in value (of great concern in the next 2-3 years), if it declines and he goes to refinance, he will get worse terms as his LTV will be higher. No?
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