Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
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.
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.
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.
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?
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.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.