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I'm in the process of closing a loan with details below. The lender has given a quote for mortgage insurance that's 2.15% of the loan amount paid upfront. It's either that or I pay a ridiculous amount monthly. Is 2.15% a good rate? Can I shop myself and get a lower rate?
Conventional Loan for $152000
LTV - 95%
Credit Scores - 749, 752, 761
@tduke wrote:I'm in the process of closing a loan with details below. The lender has given a quote for mortgage insurance that's 2.15% of the loan amount paid upfront. It's either that or I pay a ridiculous amount monthly. Is 2.15% a good rate? Can I shop myself and get a lower rate?
Conventional Loan for $152000
LTV - 95%
Credit Scores - 749, 752, 761
What kind of loan is this - conventional or FHA or something else?
When you say "pay up front" do you mean at the closing on the HUD or as a separate fee?
Are you rolling in the MI or are you including it in the cash to close?
It's a conventional loan, and the MI is being included as part of the closing costs.
In my area, for conventional PMI, if you elect to pay it upfront instead of monthly, it is typically around 1.95%, although it is based on many criteria (Credit score, LTV, DTI, reserves, home price, etc.). It can range from 1.5%-2.2% here.
This isn't something you can shop out yourself. Qualifying for PMI is actually harder than qualifying for a mortgage, so your lender typically has 1 company they go with and have good luck getting approval.