U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-18-2008, 02:31 PM
 
27 posts, read 99,498 times
Reputation: 15

Advertisements

HI,

I just entered into the buying Market. I live in katy,TX. Still confused between Cinco and Pine mill.

Can anybody tell me please Is there any mortgage without PMI if I put only 10% down payment?

Thanks in advance.
Reply With Quote Quick reply to this message

 
Old 12-18-2008, 02:54 PM
 
Location: Visitation between Wal-Mart & Home Depot
8,309 posts, read 33,350,236 times
Reputation: 7038
I don't know if it is still possible but my wife and I were able to secure a 100% financed 80/20 loan with no PMI.
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 05:41 PM
 
Location: WA
5,293 posts, read 20,713,721 times
Reputation: 5622
Typically it takes 20% down to avoid PMI. For a while you could get two loans so that the first was covered to avoid PMI but I am not sure that is possible in this market.
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 05:43 PM
 
10 posts, read 36,720 times
Reputation: 18
You can get lender paid mortgage insurance for a higher rate. Or do 80% ltv
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 07:11 PM
 
Location: Plano, Texas
1,676 posts, read 6,335,592 times
Reputation: 684
Quote:
Originally Posted by RK555 View Post
HI,

I just entered into the buying Market. I live in katy,TX. Still confused between Cinco and Pine mill.

Can anybody tell me please Is there any mortgage without PMI if I put only 10% down payment?

Thanks in advance.
Yes, you can do what is called an 80/10/10 loan. That means you have a first mortgage for 80% of the purchase price, a 2nd lien for 10% or the purchase price and you put 10% down. Some states it is very difficult to get a 2nd lien but here in Texas it is no problem. You must have a credit score of 660 to qualify credit wise.

There is also a loan that has Lender Paid Mortgage Insurance. This is a loan that you dont pay PMI, but your interest rate is about .25% to .375% higher and the lender pays the MI for you since they are making more interest.


If you credit score is above 660, do the 80/10/10 loan. If anyone says that is not a good option, let me know and i will show you the difference.

Also, a lot of home owners choose to manage their own money so they dont want an escrow account. When you have an escrow account, you are basically giving the lender 1/12 of your property taxes and 1/12 of your home owners insurance each month. Your lender holds that money for you, then pays your taxes when they are due and your insurance when it is due. If you feel comfortable managing your own money, and you dont need the lender to hold onto it for you, then you will have to do a 80/10/10. If you have one loan for more then 80% of the appraised value you are required to escrow. If you dont think you can manage your own money, then set up the escrow account, cause the last thing you would want is to get a tax bill(and here in Texas since we dont have state income taxes, property taxes are alot) around Christmas and you dont have the money saved to pay it. By the way, assume property taxes are 2.5%, so if buying a 200,000 home, taxes will be around $5000 per year.
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 07:17 PM
 
3,320 posts, read 4,704,710 times
Reputation: 11125
Quote:
Originally Posted by cdelena View Post
Typically it takes 20% down to avoid PMI. For a while you could get two loans so that the first was covered to avoid PMI but I am not sure that is possible in this market.
I hope it's not possible now, that's part of the reason "we" got into "this" mess.
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 07:19 PM
 
Location: Plano, Texas
1,676 posts, read 6,335,592 times
Reputation: 684
Quote:
Originally Posted by gold*dust1 View Post
I hope it's not possible now, that's part of the reason we got into "this" mess.

No its not. People doing a first and 2nd lien has nothing to do with the problems in the housing industry.

Instead of just making a statement, can you provide any fact to support it.
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 07:26 PM
 
28,384 posts, read 67,971,595 times
Reputation: 18190
I like Victor's detailed take on the process of getting away with 10% and a second mortgage for 10% to avoid PMI.

I think a strong argument could be made to try and scare up the extra 10% or shop for a less expensive place so that your same down payment would constitute 20% or more of the purchase price.

I would hope lenders would also see the value in moving in that direction...
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 07:28 PM
 
Location: Plano, Texas
1,676 posts, read 6,335,592 times
Reputation: 684
Thanks Chet.
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 07:57 PM
 
3,320 posts, read 4,704,710 times
Reputation: 11125
Quote:
Originally Posted by VictorBurek View Post
No its not. People doing a first and 2nd lien has nothing to do with the problems in the housing industry.

Instead of just making a statement, can you provide any fact to support it.
14 years ago we were not allowed to take a second to cover PMI, we just had to pay it. It made us accountable.


When it has been used as a way to make a mortgage possible, it has contributed to the foreclosure rates.
Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top