PMI Cost?

[Anonymous]

I just received an estimated cash to close sheet from a lender.

Purchase price $350,000

10% down $35,000

Loan Principal $315,000

PMI $383.25/month. Does this sound right?

The builders in house lending estimated $191.63

Is $383.25 high for PMI?

Thank you.

[H-B]

What is your credit score? if its in range of 700 definitely cost is higher. 

[StartingOver10]

Cost of PMI is based on LTV and credit scores.

Here is an example matrix from one of the PMI companies

https://www.mgic.com/rates/rate-cards

It's possible that your builders lender is using some of the builders contribution to offset your PMI for the first year.  This would be a question to ask your LO.

[Anonymous]

My middle mortgage score is 701. I spoke to them and they shopped it, they were able to get it down to $241.00

The builder is also having a $5,000.00 price increase across the board but we are locked in to the original price.There are two more phases to be built after this one closes out so we will build equity fast and that will help us get rid of the PMI much quicker.

[renclan]

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@Anonymous wrote:

I just received an estimated cash to close sheet from a lender.

Purchase price $350,000

10% down $35,000

Loan Principal $315,000

PMI $383.25/month. Does this sound right?

The builders in house lending estimated $191.63

Is $383.25 high for PMI?

Thank you.

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We just closed on our house and our PMI is $125 a month. Purchase price $190,000. FHA 3.5 % down. Loan amount $186,000 after downpayment. I hope this helps. My mid score was 740 and my hubby's mid score was 686.

[StartingOver10]

The rate for FHA MIP (same as PMI but it is called MIP) is much less than for a conventional loan unless you have excellent credit scores. It is .0085

Conventional loans PMI is based on LTV and credit score. The lower the LTV, the lower the rate and the better your qualifying score, the better the rate. Take the time to study the PMI rate cards for your PMI issuer.

[VALoanMaster]

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@Anonymous wrote:

I just received an estimated cash to close sheet from a lender.

Purchase price $350,000

10% down $35,000

Loan Principal $315,000

PMI $383.25/month. Does this sound right?

The builders in house lending estimated $191.63

Is $383.25 high for PMI?

Thank you.

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@I just checked & I'm seeing PMI @ .6 or $157.50 per month for your score & loan amount. 

The major caveat is what the AUS (automated underwriting system) findings are and what coverage it requires.

For example: If the AUS came back with a Refer w/ caution Level 4 decision, the PMI coverage jumps to 1.10 or $288.75.

[StartingOver10]

^^^Wow!  What a huge difference from what the OP was quoted by the LO and what VALoanMaster was able to see.

OP, it might be wise to make another app with anther lender. First find out what the AUS findings were from your LO.  That difference between your quote and what the PMI rate could be is huge. If I were in your shoes, I would find out if it was a simple error or something else. 

[Anonymous]

Thank you for all of the responses. I will definitely be shopping around.