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Old 04-14-2015, 06:08 AM
 
Location: Sugarland
13,230 posts, read 11,758,953 times
Reputation: 15253

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Quote:
Originally Posted by haudi View Post
We're talking about the difference of probably less than $120/month with PMI vs no PMI. If $120 a month is a deal breaker for buying a house, I hate to say it but you can't afford it. Your property tax payments can swing more than that in year over year, especially here in Harris County/Fort Bend County with the market the way it is.
I know what I can afford. It's not an issue of me not being able to pay PMI. I'm just saying that I could have a $1600 mortgage payment on a cheaper house that includes PMI, or I could have a $1600 mortgage payment on a slightly more expensive house that doesn't include PMI. I choose the second option.
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Old 04-14-2015, 06:28 AM
 
Location: Cary, NC
31,595 posts, read 55,307,520 times
Reputation: 30150
I would also suggest you talk to your lender about an 80/10/10 loan, if you have 10% down.

80% 1st mortgage.
10% 2nd mortgage.
10% down payment.

No PMI. Just a slightly higher and/or adjustable rate on the 2nd.
So, you concentrate on paying down the 2nd, and don't have to worry about having PMI cancelled.
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Old 04-14-2015, 06:39 AM
 
Location: Sugarland
13,230 posts, read 11,758,953 times
Reputation: 15253
Quote:
Originally Posted by MikeJaquish View Post
I would also suggest you talk to your lender about an 80/10/10 loan, if you have 10% down.

80% 1st mortgage.
10% 2nd mortgage.
10% down payment.

No PMI. Just a slightly higher and/or adjustable rate on the 2nd.
So, you concentrate on paying down the 2nd, and don't have to worry about having PMI cancelled.
Ideally I don't want to go any higher than 5% down, but thanks for the info! If I ever change my mind, that might be something to consider.
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Old 04-14-2015, 07:08 AM
 
Location: Southern California
4,350 posts, read 4,931,746 times
Reputation: 2129
Quote:
Originally Posted by Sweet Like Sugar View Post
Like a lump sum payment up front? I'd rather not do that if it's going to be thousands of dollars.
Ask the seller to pay for it.
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Old 04-14-2015, 08:04 AM
 
2,409 posts, read 2,489,132 times
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Quote:
Originally Posted by thelopez2 View Post
Ask the seller to pay for it.
Which is precisely what lender-paid PMI is about.
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Old 04-14-2015, 08:05 AM
 
2,409 posts, read 2,489,132 times
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Quote:
Originally Posted by Sweet Like Sugar View Post
I know what I can afford. It's not an issue of me not being able to pay PMI. I'm just saying that I could have a $1600 mortgage payment on a cheaper house that includes PMI, or I could have a $1600 mortgage payment on a slightly more expensive house that doesn't include PMI. I choose the second option.
How much of a difference in monthly payment would it make for you?
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Old 04-14-2015, 08:21 AM
 
Location: Sugarland
13,230 posts, read 11,758,953 times
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Quote:
Originally Posted by AmFest View Post
How much of a difference in monthly payment would it make for you?
One lender estimated $160 per month in PMI and another lender estimated $98.
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Old 04-14-2015, 08:22 AM
 
Location: Sugarland
13,230 posts, read 11,758,953 times
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Quote:
Originally Posted by thelopez2 View Post
Ask the seller to pay for it.
I already plan to ask for closing costs so I don't want to get too demanding.
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Old 04-14-2015, 08:44 AM
 
2,409 posts, read 2,489,132 times
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Quote:
Originally Posted by Sweet Like Sugar View Post
One lender estimated $160 per month in PMI and another lender estimated $98.
Yes but how much would the increase in interest rate cost you per month?
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Old 04-14-2015, 08:47 AM
 
12,404 posts, read 9,199,643 times
Reputation: 8863
Quote:
Originally Posted by Sweet Like Sugar View Post
With the LPMI, my monthly mortgage payment would be less than what it would be with PMI. I understand that PMI doesn't last forever, but I'm concerned with right now. Someone above mentioned that I could have found a cheaper house, but I'm having problems finding what I'm looking for and having a bit more flexibility to increase the sales price would help.
If you're so concerned with right now then why buy a house at all? If you are thinking short term, then better to keep your downpayment cash liquid and rent.
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