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Old 09-30-2008, 09:49 AM   #1
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First Time Homebuyer with questions about mortgages..


Hi, my husband and I are currently bidding on a house and I talked to my mortgage specialist yesterday and she told me there would be no Primary Mortgage Insurance, however on the Good Faith Estimate she faxed me there is a UFMIP of about $2300, which looks like it was added to my loan amount. If there isn't supposed to be any Mortgage insurance, why is that amount added to my loan? Angie

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Old 09-30-2008, 02:01 PM   #2
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First Time Homebuyer with questions about mortgages..


Up Front Mortgage Insurance Premium? How much are you putting down on the house?

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Old 09-30-2008, 06:38 PM   #3
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It's normal to be required the first years insurance premiums at closing.
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Old 09-30-2008, 10:14 PM   #4
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Up Front Mortgage Insurance Premium? How much are you putting down on the house?
Jerryh3, Do you mean Home insurance?

In my state they usually charge 6 to 9 months. If you put enough down you can waive the escrow and not pay that money up front. However you have to remember to pay your property taxes, and in my case that's twice a year.
In MN if you put 20% down you don't have to worry about PMI. Or you can do 2 loans in what's sometimes called an 80/20 to avoid the PMI. As an FYI, PMI is now tax deductible, but I would try to avoid it if your finances permit.
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Old 10-01-2008, 05:18 AM   #5
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First Time Homebuyer with questions about mortgages..


We went through the same thing--with all the work we wanted to do on the house we could only comfortably put 5% down. Depending on the type of mortgage we either had to pay the upfront mortgage insurance $2500 (I think that one was FHA) or for the conventional loan pay the PMI and get the house appraised later to drop the PMI. We chose PMI because we can pay for an appraisal and drop the PMI after 12 months--instead of going the full 2 years which would have equaled about $2500 as well.

Either way unless you put 20% down--you're going to pay mortgage insurance--whether it's upfront or monthly
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Old 10-01-2008, 06:54 AM   #6
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Jerryh3, Do you mean Home insurance?

In my state they usually charge 6 to 9 months. If you put enough down you can waive the escrow and not pay that money up front. However you have to remember to pay your property taxes, and in my case that's twice a year.
In MN if you put 20% down you don't have to worry about PMI. Or you can do 2 loans in what's sometimes called an 80/20 to avoid the PMI. As an FYI, PMI is now tax deductible, but I would try to avoid it if your finances permit.
No. I meant Mortgage Insurance. I don't know how this broker was telling them they weren't going to have PMI if they were putting less than 20% down on the house. I don't know if 80/20 loans are going to be around much longer given the credit restrictions developing now.
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Old 10-01-2008, 10:47 AM   #7
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Either way unless you put 20% down--you're going to pay mortgage insurance--whether it's upfront or monthly
Or unless you can obtain a VA loan.
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Old 10-05-2008, 05:27 PM   #8
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I hope they told you about the Stimulis package,$7500,first time home buyer,tax credit.
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Old 10-06-2008, 10:42 PM   #9
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I thought you could not get a mortgage anymore since the media says daily all the banks are going to collapse, we are heading into the great depression, and the world is coming to an end.


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Old 12-01-2008, 07:49 AM   #10
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Either way unless you put 20% down--you're going to pay mortgage insurance--whether it's upfront or monthly
If you're only putting 5% down, the way around paying PMI is to take two loans, primary mortgage for 80% and an equity loan for 15%.

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