No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
HinH wrote:
My PMI is around $600/month on a 290,000 30yr mortgage. My question is this: my FICO score has gone up and my lender told me it (the hihg PMI) was based a lot on your FICO, since mine has gone up, do I call CITI mortgage and ask to adjust? OR am I SOL until I reach 680 to refi with a no PMI program (what I was told).
Thanks!
The 1.5% MIP charged on FHA loans is actually financed into the loan amount, and it's a one time fee, not an annual fee. So say your loan amount was $95k before the MIP, it would be $96,425 ($95k + 1.5% of $95k which is $1,425) with the MIP included. You can always elect to pay the MIP out of pocket as well, but it's a neat feature that FHA has to include it into the loan amount. On FHA there is monthly PMI as well (unless your LTV is below 90% and you are taking a loan term of 15 years or less), equivalent to .5% per year, or ~.0416% per month.
reformedfamilyman wrote:I had no idea about such a thing as a MIP. I need to figure this out now. Here's a hypothetical (though likely for us later) scenario. We buy a home for $100K:using an FHA loan - $3000 down, principal of $97,000, payment of $521/mo. MIP of 1.5% = $1500 > $125/mo. PMI of .51% (.50% plus .01% to make it refundable) = $510 > $42.50/mo. Total monthly payment by choosing an FHA loan with 3% down = $688.50 OR *is it a flat fee of $1500 at closing? That would bring the monthly payment down to $563.50. We'd still have to fork over $1500 at closing for the priviledge though. I'd rather that go to our principal.using a convential 5% loan - $5000 down, principal of $95,000, payment of $510/mo. NO MIP. PMI of .55% (.54% plus .01% to make it refundable) = $550 > $45.83/mo. Total monthly payment by choosing a conventional 5% loan with 5% down = $555.83Now that I look at this, it seems like a no brainer to choose a conventional loan. I could either choose FHA and throw away $1500 at closing or choose the 5% and spend $500 more and have it go towards our principal. Is this correct?
cnscronce wrote:What about Suzy Orman's advice about paying PMI upfront or tacking it on the back of your loan so that the amount then becomes tax deductable?