80/10/10 mortgage (loans, house, closing)

[NJStealth]

All,

Would just like some feedback on this loan I am looking at.... I just bought a home and I am closing in JUNE... This is from Ryan Homes so I went through NVR Mortgage to get the incentives.... I asked them about the 80/10/10 loan and they are telling me with all the forclosures going on they dont really offer this much as an option as the interest rates are sky high on this type of loan... I am trying to avoid PMI so I can get taxable interest. Does anyone know this to be true?

[Judge Smails]

Originally Posted by NJStealth

All,

Would just like some feedback on this loan I am looking at.... I just bought a home and I am closing in JUNE... This is from Ryan Homes so I went through NVR Mortgage to get the incentives.... I asked them about the 80/10/10 loan and they are telling me with all the forclosures going on they dont really offer this much as an option as the interest rates are sky high on this type of loan... I am trying to avoid PMI so I can get taxable interest. Does anyone know this to be true?

My loan was an 80/15/5 loan. I paid the 5% of course and got two mortgages. I didn't want to pay PMI either and both loans went toward the principle amount.

[JerzBoy]

NJStealth - PMI is now deductible on your tax returns.

[amyd83]

I know you have to use NVR but many banks including Wells Fargo and Bank of America are offering Bank paid PMI. You could always refi thru them in aftrer you close. Bank of America is also offering almost no closing costs...

[NJStealth]

I thought PMI is only deductible if you make under a certain salary

[hrjersey]

I know you don't want to pay PMI, I didn't either when I bought my home. At the time the market was rising so after 18 months I requested a new assessment. My house easily assessed for more so that the amount of equity in the home exceeded my mortgage by 20%. The bank immediately stopped charging me the PMI.

[judithexit]

Originally Posted by hrjersey

I know you don't want to pay PMI, I didn't either when I bought my home. At the time the market was rising so after 18 months I requested a new assessment. My house easily assessed for more so that the amount of equity in the home exceeded my mortgage by 20%. The bank immediately stopped charging me the PMI.

after 24 months you can call the bank and they will take it off
if you made all 24 payments on time.

[judithexit]

Originally Posted by amyd83

I know you have to use NVR but many banks including Wells Fargo and Bank of America are offering Bank paid PMI. You could always refi thru them in aftrer you close. Bank of America is also offering almost no closing costs...

This ture but they raise rates to cover cost to do this.
Bank of America aka country wide home loans
wells fargo rates suck compared to the other banks

[CuCullin]

Originally Posted by judithexit

This ture but they raise rates to cover cost to do this.
Bank of America aka country wide home loans
wells fargo rates suck compared to the other banks

BofA is not Countrywide. Bank of America *bought* Countrywide, and Bank of America has had a no fee program since well before that.

And the rates are good. I got one, got the same rate as I would have without the no fee program.

So your post is more than a little inaccurate.

[TimtheGuy]

Originally Posted by judithexit

after 24 months you can call the bank and they will take it off
if you made all 24 payments on time.

Removing PMI is based on value, not on time payments.