Question by Tigz | Posted in Renting & Real Estate
Can you give me an idea of what I'll pay each month for private mortgage insurance (if I purchase a home with less than 20% down)? Is it different in different states?
For example, how much would I pay each month (in addition to the mortgage payment) if it's a $300,000 house?
Any help would be appreciated! Thanks!!
Judy, thanks. Is there some way that I can calculate this for myself? For example, is the monthly premium for PMI typically 0.1% of the purchase price of the house?
BTW, I live in SoCal, so I AM already looking at the smallest house available! LOL
Answer: With 10% down - if you qualify (0% down days are long gone).
You'll pay $219.33 monthly on PMI
Remember that this money is not tax deductible and does not apply towards principal or interest.
PMI is also hard to remove once you reach 80%
You may have to get appraisals or reach 25% equity to have this removed.
Do everything you can to come up with 20% down - you'll thank yourself.
Consider buying a smaller home.
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How Much Does Mortgage Protection Insurance Typically Cost?
Question by Dianne S | Posted in Insurance
Is it based on the value or the amount you owe on the house? Who should have this type of insurance? Is it very expensive? If you have this type of insurance, should you drop it after you've paid down your mortgage to a certain percentage?
Answer: In most cases term life insurance is cheaper. If you really want you can drop off some of the term insurance as you pay down your mortgage principal, keeping in mind early on you pay mostly interest.
Question by tinaroonie | Posted in Renting & Real Estate
I'm just wondering how much mortgage insurance costs. I know you have to have it if you put less than 20% down. I'm thinking of buying a condo/townhouse, and I don't know that I'd have 20% to put down, maybe 10%, depending on the property I would buy. I'm just wondering how much the average mortgage insurance costs. Is it a percentage of what you put down or a percentage of what your mortgage is or is it a set amount, no matter what? Also, I know that I would stop paying mortgage insurance after I've reached 20% principal, so does it automatically stop, or do you have to keep track, and then take it off yourself? Just wondering.
Answer: PMI is there to cover a lender in case of a foreclosure (and for other reasons). You have all of you facts correct. To get rid of it you need to prove 20% equity in the property based upon the original purchase price. Homes appreciate, you do improvements, you make extra payments - there are various way to get rid of it. By federal law your lender must cancel it when you reach 78% loan-to-value however you can cancel it yourself at 80% LTV if you have a solid payment history.
The amount you will pay is based upon your loan amount, credit rating, and LTV. If you have an approval without any of the various levels (meaning your credit is fine), you will pay the least for PMI.
How Much Should A Mortgage Insurance Premium Cost In A Refinance. Is A Website That Offers Free Advice?
Question by jazz | Posted in Renting & Real Estate
Im in the process of refinancing my home. I received my good faith estimate. I do not understand what some of the charges are. Some of the charges were explained to me by the loan officer but I'm not sure if its all truth or sales. I want to make sure that I'm not too much for a cost. In my truth and leanding statement . Im being charge 1% of a 362,000, 30 year home loan at 6.5% which is 3537.12. I'm also being charged a loan discount fee of 0.837 for $3035.12. My big question is the Mortgage Insurance Premium for $8844.38 (UFMIP/FF Financed). Is this something that I can avoid if I'm going to paying monthly mortgage insurance of 146.66. Where can I get free advice to make sure I'm
Answer: The interest rate and the fees they are charging you are ridiculous.
I recommend that you cancel the transaction and start over with your credit union if you are a member of one or the bank where you have your savings and checking accounts.
I recently refinanced my house. I started with an online broker that claimed to have extremely low interest rates and low fees.
At the sign off I discovered that the loan terms the rates and the fees were completely different from what I had been told all through the process. the interest rate that they had was absolutely outrageously high.
Question by jspinx | Posted in Renting & Real Estate
I am a new lender. My first loan shows a purchase price of 298,000. 100% financing. Of course, mortgage insurance is required. The mortgage insurance is .85% of the purchase price. Should I get this client a loan for 298,000 + the cost of the mortgage insurance? If so, how much should I add (i.e one year, one month)?
Answer: Hi and congrats to becoming a new broker.
To show PMI(private mortgage insurance) on the the GFE it would probably under the 1002 section on the GFE. No you do not need to add in the mortgage Insurance. It will be calculated into the first payment along with the PITI. The PMI should be around $210.
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Life Insurance could be also good. I have state farm car insurance and pleased so far with them. If not, then you can simply squirrel away money into a savings account to cover this, and later convert it over to a pre-planned funeral arrangement. If not, then more than likely within the next 10 years you can obtain a job with affordable rates and similar or better coverage. I had accident in the past and they paid everything around $3500 damage on my new 2007 civic....
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