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| *Loan,banking and credit>>>mortgage loan |
Where can I get a great new purchase mortgage loan without PMI? |
I have a low credit score, but my wife has a better one. I make more money than her. I've been given an offer from a bank but not a good one in my opinion. If you put down enough money you can get a mortgage without PMI just about anywhere. One thing some people do is to take out a home equity line at the same time and use the home equity credit to increase the total downpayment to a sufficient amount so you won't need PMI. It means you will have two mortagages, the main one and the smaller home equity one, but you will be free of PMI related debt once the home equity line is paid off. I believe the only way to avoid PMI is to put 20% down on the loan. You need to put some money down and you shouldn't have to pay/have PMI. Lending tree can get you 3 loan offers, but remember they check your credit report 3 times. www.lendingtree.com Anytime you are unable to put 20% down on a purchase, you'll have to pay PMI. PMI is a ripoff, but the only alternative is to have one loan for 80% of the purchase amount, and a 2nd loan to cover whatever is left. The 2nd loan will be at a much higher rate, and it would probably cost you less to just pay the PMI. The reason for the PMI is that the lender considers you a higher risk because you can't afford to invest 20% of your own money into the property and you're more likely to default on your loan. Typically you have to put 20% down to avoid PMI. No other way to do that (maybe if you bought directly from the owner via owner financing you could avoid it, but thats very very rare to get). Your credit score matters to get the loan and what interest rate you will get, but the PMI is just based on the 20% equity rule. As to where, I'd try some local banks in your area, they are often better for local stuff. Be sure to open an account there if they give you a loan- just good business. You can only avoid PMI if you have a down pmt of 20% or more, For pmi purposes, the bank does not care what your credit score or income is....just if you have 20 % to put down. The only other option is a 80/10/10 or a 80/15/5 loan in which you put 5 or 10 percent down and 80% mortgage on a first loan at the best rate you qualify for, and a second loan (for the 10-15% need to make 20%) at a higher rate(usually about 1.5-2 points higher). Good luck |
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