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Old 04-04-2015, 09:31 AM
 
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What you need to know about mortgage insurance

What you need to know about private mortgage insurance | Interest.com
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Old 05-25-2015, 12:51 AM
 
Location: St Thomas, USVI - Seattle, WA - Gulf Coast, TX
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Quote:
Originally Posted by dseg View Post
Is a rescore my only option?
Why are the bucketing differences so vast with a payment? .62% (720+) versus .89% (719-680).
One point is a .27% difference in monthly PMI payment, $60/month is a lot for me.

Am I missing other options for PMI?
I'm late to this thread, but there are options for side-stepping PMI. Did you lender(s) talk to you at all about split mortgages? It takes a bit more work, but a great lender will crunch numbers, and if it helps, put together two mortgages (sounds like 80% & 15%, in your case, the remaining 5% being your down payment) for you. The 15% (of your purchase price) mortgage essentially funds your 80% mortgage to fulfill the loan to value ratio in order to avoid the need for PMI. Your second, smaller mortgage will have a higher interest rate, but it can be paid off more quickly (hopefully) and then will be gone, unlike PMI which, as others have mentioned here, does not drop off automatically when you hit your 20% LTV. Another plus for this method is that, instead of throwing away money on PMI every month, at least you're stashing a few more bucks towards your principal. The numbers don't always add up to make this the best option, but it often is and is worth a look. This might be clearer than my ramblings:
How To Outsmart Private Mortgage Insurance
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