Two weeks ago I got pre-approved. Since then I've executed a purchase contract and entered escrow a couple of days ago. I need to inform the title company of my lender selection by the end of business Tuesday who my lender is going to be.
Since completing the purchase contract, I've been mortgage shopping and have been approved for several different kinds of mortgages (5% downpayment):
1) 30 year fixed conventional w/PMI (broker 1)
2) 30 year fixed conventional w/interest only option w/PMI (broker 1)
3) 30 year fixed conventional w/lender paid PMI (Countrywide)
4) 75/20/5 piggyback loan with 30 year fixed first (bank)
5) 40 year fixed convential w/PMI (broker 2)
I've run through all the monthly numbers and associated tax deductions and understand these options from the purely financial perspective. The one unknown is the exact terms of the second mortgage with the bank (I pressed them hard to get me info late on Thursday and in the rush they forget to send the details of the second).
What I'm wondering are there any other considerations that should be taken into account when sorting through these options? Specifically, I'm wondering about:
a) pro's and con's of lender-paid PMI over borrower-paid PMI
b) PMI vs piggyback loans (what's the general feel towards piggyback's these days)
c) thoughts on why the bank went with 75/20/5 instead of 80/15/5
My real estate agent keeps telling me to make sure I'm comparing apples to apples, yet none of the lenders are coming back with the same kind of apple.
Any thoughts, insight, guidance is greatly appreciated.
