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There are many different options for no PMI. However you will get a higher interest rate so you end up paying for the lack of downpayment in some way. If you plan to stay in the house for a long time then pay PMI but a short term is better to get a lower interest rate to get equity quicker. Your mortgage officer should be able to run the math for you.
Hm, I got a great interest rate in 2012 even though I pay PMI. I have no idea if that can still be done, but it was done at least once then. Would rather not pay the PMI but I didn't have the down payment I wanted, knew I was buying well within my means, and had it up to here with renting at that time given that my maintenance guy was a sex offender.
Here's at least one good thing about house price inflation: you'd reach the 20 percent threshold quickly. If for example, you bought a $300 000 house with no down payment, at 4.5% interest, and the appraised value of your house rises 5% per year, in about four years you'd have 20 % equity and can get the PMI cancelled. I don't know if all loans permit this, but some do. You do have to pay for the appraisal yourself.
There's no good reason to do that when I can get excellent interest rate and no PMI with a VA loan.
There is if you want to be competitive. I'd see if you can join Navy Fed. Their 100% loans are about the best I've seen in terms of interest rate and no need to pay PMI.
You could probably do a regular loan (fixed or ARM) and if the VA rate is really that much lower, refi with a VA loan.
You'd pay the CCs twice, but it might be a long-term better deal. I have not looked at VA rates lately.
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Here's at least one good thing about house price inflation: you'd reach the 20 percent threshold quickly. If for example, you bought a $300 000 house with no down payment, at 4.5% interest, and the appraised value of your house rises 5% per year, in about four years you'd have 20 % equity and can get the PMI cancelled. I don't know if all loans permit this, but some do. You do have to pay for the appraisal yourself.
Most wont allow just appreciation to kick out PMI, it must either be paid down from original amount or refi'd. A problem we ran into when refi'ing was to get the best rate the amount has to be above a lenders lower limit, all that meant for us was a cash out refi then make a large one time payment back on the mortgage.
Most wont allow just appreciation to kick out PMI, it must either be paid down from original amount or refi'd. A problem we ran into when refi'ing was to get the best rate the amount has to be above a lenders lower limit, all that meant for us was a cash out refi then make a large one time payment back on the mortgage.
Hmmm...I had the PMI lifted from a loan by getting a new appraisal; didn't realise that it was a good deal that my lender allowed this. It was a mortgage with a credit union, and it also had a yearly disclosure, that when the loan amount dipped below 78 % of the original purchase price, the PMI would be lifted. But if you could show that the loan to value was 80% or less, they also would lift the PMI (which they did).
We would not have 20%, which would mean we'd have to pay PMI.
If we can't get a house with the VA loan, we simply won't buy.
you should talk to your lender about the difference in approval process, appraisal, inspection, and any costs that you are NOT allowed to bear. And have your lender explain it to your agent.
In the English language, you can "intend" to do one thing, but do another, and be without fault.
There's no good reason to do that when I can get excellent interest rate and no PMI with a VA loan.
but you may not ever get the house you want when you check the VA block and attach the Addendum to every offer you submit in a multiple offer situation.
but you may not ever get the house you want when you check the VA block and attach the Addendum to every offer you submit in a multiple offer situation.
Yeah, I understand it's going to make the search take longer. I'm ok with that.
Yeah, I understand it's going to make the search take longer. I'm ok with that.
WAY longer. In a multiple offer situation a VA loan will lose every single time. VA appraisers are the toughest out there so if you go over asking chances are it wont appraise and cause issues. Seller agents are very aware of this. If you can swing a down payment go with conventional. They will do 3% with and without PMI.
So little inventory with high demand we are settling in uncharted territory. Low rates will keep demand high and low inventory prices high. I would hate to be a buyer now and over the next year. Rent stay patient.
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