Cost of Mortgage Insurance (PMI, escrow, fee, upfront)

[SAgosto]

What is everyone paying for Mortgage insurance?

I got a few different quotes with some range such as ~$550K w/ 5% down and $265 per month and another at $320 per month with 10% down. Is this negotiable at all? Can the bank/financial institution shop around?

[SmartMoney]

Originally Posted by SAgosto

What is everyone paying for Mortgage insurance?

I got a few different quotes with some range such as ~$550K w/ 5% down and $265 per month and another at $320 per month with 10% down. Is this negotiable at all? Can the bank/financial institution shop around?

Mortgage insurance is unique to each situation so much more goes into the quote besides the LTV.......some companies have a better rate or allow for something another insurer won't. But like big banks, there's only 4 or 5 players and not much choice and not much difference. You may find the others are $5 or $10 more and that's if your mortgage company is signed up with them........not everyone signs up with every company. Each has a different bond rating.

[SAgosto]

Moderator cut: refers to deleted post

Originally Posted by SmartMoney

Mortgage insurance is unique to each situation so much more goes into the quote besides the LTV.......some companies have a better rate or allow for something another insurer won't. But like big banks, there's only 4 or 5 players and not much choice and not much difference. You may find the others are $5 or $10 more and that's if your mortgage company is signed up with them........not everyone signs up with every company. Each has a different bond rating.

Interesting. The broker that I am working with is pricing me at .74% of the purchase price but also has an option to eliminate PMI with an upfront fee of 1.5% of the purchase price. I am going to take that route as it is a higher savings for me.

[VictorBurek]

why not do a first and second that way you have no mortgage insurance, and you can choose not to escrow taxes and insurance.

[SAgosto]

Originally Posted by VictorBurek

why not do a first and second that way you have no mortgage insurance, and you can choose not to escrow taxes and insurance.

It's an option. I'd have to do the #s on the increased APR to see if it is worth it. The up front fee to eliminate MI all together is a nice option.