Mortgage question??

Hi we went to a bank to get a quote for a mortgage--they told us since we arent putting 100,000 down we will have to take a mortage insurance loan--or something like that--Has anyone ever heard of this?
We are putting between 10%-15% down-does anyone have any recommendations where we should go next???
TIA!!!!!!

If you put less than 20% down you have two options
1 - take one big loan and pay pmi until 20% is paid off

2 - get two mortgages - one for 80% of purchasing price and a second one for the remainder - (called piggy backing mortgages and other names) - the numbers vary on this to aviod jumbo mortgages which start about 410,000 and have higher interest rates

hope this helps

If you are putting at least 10% down.... do NOT pay any PMI.

Tell your bank you want an 80/10/10 loan. You put your 10% down. They open up a 10% home equity line of credit. And you get an 80% mortgage. You pay no PMI in this case.

If your bank says they cant do this and insist you pay PMI... tell them no thanks and find another bank.

You can use this mortgage broker I used if you need to compare rates. He gave me a killer rate... does 80/10/10 loans... he works with all the major banks... got my committment in four business days... and didnt give me any bullcrap.


http://www.gardencitymortgage.com

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Posted by DjPiLL

If you are putting at least 10% down.... do NOT pay any PMI.

Tell your bank you want an 80/10/10 loan. You put your 10% down. They open up a 10% home equity line of credit. And you get an 80% mortgage. You pay no PMI in this case.

If your bank says they cant do this and insist you pay PMI... tell them no thanks and find another bank.

You can use this mortgage broker I used if you need to compare rates. He gave me a killer rate... does 80/10/10 loans... he works with all the major banks... got my committment in four business days... and didnt give me any bullcrap.


http://www.gardencitymortgage.com

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How do they make their money if they can give a great rate? Is there a catch for going with a broker as opposed to a bank?

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Posted by KarAnthony

http://www.gardencitymortgage.com

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How do they make their money if they can give a great rate? Is there a catch for going with a broker as opposed to a bank?

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The same way stores online can charge less for the same item as compared to buying things in a store.

The brokers get the bank's 'wholesale rates'. Trust me when you are giving the bank 300k for the life of the mortgage in interest... the banks are still making money. lol

Do yourself a favor and get a few quotes when you find the house you want. Go to your bank, maybe another and get a good faith estimate. This will outline your closing costs and any other fees. I have not had good experiences with brokers, but that doesn't mean you won't have a good experience. If you have a broker that is recommened, give him/her a call too and get a good faith estimate from them too. The rate is not the only thing to consider when purchasing real estate.

Put all quotes side by side and compare them. Have the banker/broker explain in very simple terms how it breaks down.

Keep in mind that each bank/broker my want to pull your credit. I think the credit agencies allow you 4 pulls in a month before it starts affecting your credit score. That's why it's a good idea to go with a recommendation for financing so you don't waste your time or your precious credit score!

Good luck with your search.

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Posted by Blu-ize

Keep in mind that each bank/broker my want to pull your credit. I think the credit agencies allow you 4 pulls in a month before it starts affecting your credit score. That's why it's a good idea to go with a recommendation for financing so you don't waste your time or your precious credit score!

Good luck with your search.

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Where did you hear four pulls from?

I heard you can take as many pulls as you want within a 30 day span and it all counts as one pull.

Hell... i get my credit pulled all the time and I am still an 800 credit score.

[

I heard you can take as many pulls as you want within a 30 day span and it all counts as one pull.


My Hubby told me this the other day-

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Posted by DjPiLL

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Posted by Blu-ize

Keep in mind that each bank/broker my want to pull your credit. I think the credit agencies allow you 4 pulls in a month before it starts affecting your credit score. That's why it's a good idea to go with a recommendation for financing so you don't waste your time or your precious credit score!

Good luck with your search.

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Where did you hear four pulls from?

I heard you can take as many pulls as you want within a 30 day span and it all counts as one pull.

Hell... i get my credit pulled all the time and I am still an 800 credit score.

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It's credit pulls for opening new lines of credit I was told. Inquiries for credit checks may be different.

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Posted by Blu-ize

It's credit pulls for opening new lines of credit I was told. Inquiries for credit checks may be different.

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Yeah... opening new actual accounts is one thing.

But credit checks for mortgages are different. As long as they are done in 30 days its counted as one pull.

But they have to be 'similar inquiries' to be counted the same.

You can't have three pulls from banks for mortgage applications... and then expect a pull from T-Mobile to be included as well. The T-Mobile pull will be considered separate.

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Posted by DjPiLL

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Posted by Blu-ize

It's credit pulls for opening new lines of credit I was told. Inquiries for credit checks may be different.

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Yeah... opening new actual accounts is one thing.

But credit checks for mortgages are different. As long as they are done in 30 days its counted as one pull.

But they have to be 'similar inquiries' to be counted the same.

You can't have three pulls from banks for mortgage applications... and then expect a pull from T-Mobile to be included as well. The T-Mobile pull will be considered separate.

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Yep-that's right-also to keep in mind that if you are buying a house/condo..etc..and you are looking for a mortgage and you go opening new credit card lines or start buying furniture..that will count toward your 4 pulls per month.

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Posted by Blu-ize

Yep-that's right-also to keep in mind that if you are buying a house/condo..etc..and you are looking for a mortgage and you go opening new credit card lines or start buying furniture..that will count toward your 4 pulls per month.

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Yeah. But frankly... once i am IN the house... i really don't care what happens to my credit score. Even if my score drops 50 points from opening all sort of credit lines for furniture and stuff like that... that drop in the credit score will eventually come back up from making my monthly mortgage payment on time every month.

Years down the road when I am ready to move into my next house... my score will be back up to where it should be.

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Posted by DjPiLL

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Posted by Blu-ize

Yep-that's right-also to keep in mind that if you are buying a house/condo..etc..and you are looking for a mortgage and you go opening new credit card lines or start buying furniture..that will count toward your 4 pulls per month.

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Yeah. But frankly... once i am IN the house... i really don't care what happens to my credit score. Even if my score drops 50 points from opening all sort of credit lines for furniture and stuff like that... that drop in the credit score will eventually come back up from making my monthly mortgage payment on time every month.

Years down the road when I am ready to move into my next house... my score will be back up to where it should be.

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I'm talking about before you close. If it's more than 90 days since they ran credit and they have to run it again before closing and you have opened up all kinds of credit accts, your credit score may be affected. That's why, if you choose to mortgage shop, your credit score may change.

If you have good credit, go through a bank! At least that's what most people are saying to us. You can do the 80/20 or 80/10/10 loan and u and DH can even write off part of the second mortgage on your tax return the following year.

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Posted by Blu-ize

I'm talking about before you close. If it's more than 90 days since they ran credit and they have to run it again before closing and you have opened up all kinds of credit accts, your credit score may be affected. That's why, if you choose to mortgage shop, your credit score may change.

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You are correct... your score may drop. Most likely it won't drop my much because again... all those pulls should be treated as a single pull. A single pull won't make or break you.

The most important thing is the bank will still see the same amount of accounts open and the same amount of debt. They will compare the two credit reports and know this.

The bank won't care if your score drops 20 points. But they WILL care if you have added any significant debt since the application (like buying a car or running up a CC).