How helpful is it to shop around for a mortgage?

[ShanetheMortgageMan]

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@moneypenny02 wrote:

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@StartingOver10 wrote:

It's called an 80%-10%-10% which means an 80% first mortgage, 10% second mortgage and 10% down payment.

There are also some 90% first mortgages around, with smaller lenders, that don't have PMI.

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Do you mind sharing who offers these 90/10 mortgages with no PMI?  (I am in the los angeles area, if that matters)

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Nearly all lenders offer it, just ask if they offer a Single PMI premium in lieu of the regular monthly amount.  Then you can either pay the Single PMI premium out of pocket, or you can ask for them to pay for it in trade for a little higher interest rate.

[accidentalpancake]

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@lunch wrote:

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@accidentalpancake wrote:

You also may want to consider asking about taking an 80% mortgage along with a second mortgage for the remainder to eliminate the need for PMI. That's how we've done ours. No effect on rate, and no PMI to pay, making the payment significantly less than if we did a traditional single mortgage. We do have a balloon on the second, at 15 years, however.

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Interesting.  Never heard of that. Did you get the 80% and the second at the same time? 

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Mine is an 80%-15%-5%. And yes, they both go through the process at the same time.

I've got a really awesome broker doing the deal, so it may or may not be more difficult than it has been in my situation.

[Walt_K]

If you're considering LPMI, make sure you consider how long you plan to be in the house.  With traditional mortage insurance, you're only going to pay it for so long until you get below a certain LTV.  With LPMI, you're taking a higher rate for the life of the loan.  So you could end up paying more money in the long run if you keep the house for a long time.  

[tiredofwaiting]

We are looking for a VA loan.  Some providers say they will take the lowest of the three scores, some say they will take the middle of the three scores for both me and my husband.  My question is, if you "shop around" will it not lower your FICO score to have several hard hits on your credit by doing so?

Thanks,