Mortgage/House Question

say we buy a house before the wedding - we would only be able to put 10% down - which would mean we would pay PMI - but after the wedding we'll probably have another 10% - are you allowed to put down the rest after the fact? and eliminate PMI? would the monthly mortgage payment go down as well? if we closed in October or November it would really only be 1 or 2 payments in and then we would have the other 10% (we would use some of our wedding money KWIM?)

---

Posted by EsquireBride

I think first you should find out if you could even get a mortgage for 90% in this economy. I have heard that it is getting harder to do so.

---

well as of this week we can don't know what will happen in the next few weeks

if you are able to approved for a mortgage, the best way to avoid having to pay PMI is to actually get 2 mortgages, the primary mortgage would be approx 80% of the total mortgage amount and then the secondary mortgage is the other 20%. the secondary mortgages are usually balloon which means after 15 yrs the rate would greatly increase, but all you have to do is refinance sometime in the first 15 years to a regular 30 yr or 15yr fixed rate mortgage, combining the 2 together. This is becoming very normal practice and saves you a lot of extra finance fees (like PMI)

Also...make sure that the bank you are working with will allow you to pay principal only, or pay early without any additional fees. most do allow this but it's good to check.

10% down payment in this market is actually a very good DP, believe it or not. Most couples have been average 0-5% over the past year.

HTH...

---

Posted by jennarose023

if you are able to approved for a mortgage, the best way to avoid having to pay PMI is to actually get 2 mortgages, the primary mortgage would be approx 80% of the total mortgage amount and then the secondary mortgage is the other 20%. the secondary mortgages are usually balloon which means after 15 yrs the rate would greatly increase, but all you have to do is refinance sometime in the first 15 years to a regular 30 yr or 15yr fixed rate mortgage, combining the 2 together. This is becoming very normal practice and saves you a lot of extra finance fees (like PMI)

Also...make sure that the bank you are working with will allow you to pay principal only, or pay early without any additional fees. most do allow this but it's good to check.

10% down payment in this market is actually a very good DP, believe it or not. Most couples have been average 0-5% over the past year.

HTH...

---

thanks - i heard about that, doing two mortgages so you dont have to pay PMI....my FH talked to his bank JP Morgan and also a mortgage broker but i figured i'd see if there was any advice here from real home buyers....

we really dont want to close on a home until after the wedding, but if we have to close before we will....this is actually the second short sale home we are looking at - so we dont even know if we are going to get the house, but its nice to think ahead .....we put an offer on a short sale back in June and were waiting to see if the bank would approve the offer - in the meantime we found another short sale home - so we decided not to renew our contract/offer on the first house and we are thinking of making an offer on this second house.....

the first house our offer didnt even get approved that is what we were waiting for - but this second house, the bank has already approved an offer amount and wont accept anything less - so if we make an offer it will be for what the bank wants and it eliminates all that waiting.....so closing would be much quicker....thats why im asking

just pipe dreams for now!

we are in the same situation and the way the mortgage broker explained it to me- we have no-prepayment penalty- so we will pay the 10% as soon as we can and that will eliminate our PMI- which by the way is only $96 a month- but still better in our pocket.

most banks wont allow for split loans anymore because of the mortgage crisis- that was how we planned to do it before.

---

Posted by futuremrsfab

we are in the same situation and the way the mortgage broker explained it to me- we have no-prepayment penalty- so we will pay the 10% as soon as we can and that will eliminate our PMI- which by the way is only $96 a month- but still better in our pocket.

most banks wont allow for split loans anymore because of the mortgage crisis- that was how we planned to do it before.

---

well, for us the loan amounts aren't high because its florida and its a short sale....im talking about a loan amount under 150K which is peanuts compared to NY prices - i dont want to pay PMI even if its only $50 bucks a month - i rather that be in my pocket - and i want to put 20% down - so our mortgage will be less than 1K a month BUT the wedding has become a circus and that needs to get paid too we def could have bought a house in cash in florida if we weren't paying for the wedding - that's sad what were we thinking when we planned this wedding?!?!?

---

Posted by futuremrsfab

we are in the same situation and the way the mortgage broker explained it to me- we have no-prepayment penalty- so we will pay the 10% as soon as we can and that will eliminate our PMI- which by the way is only $96 a month- but still better in our pocket.

most banks wont allow for split loans anymore because of the mortgage crisis- that was how we planned to do it before.

---

yeah you need to have super duper credit for just about anything lately....we bought our house last year so it was a little easier for us, but when it's right it will happen!!!!

GOOD LUCK TO ALL!!!!! Owning our own house has been a dream come true and I am so happy!

---

Posted by jennarose023

---

Posted by futuremrsfab

we are in the same situation and the way the mortgage broker explained it to me- we have no-prepayment penalty- so we will pay the 10% as soon as we can and that will eliminate our PMI- which by the way is only $96 a month- but still better in our pocket.

most banks wont allow for split loans anymore because of the mortgage crisis- that was how we planned to do it before.

---

yeah you need to have super duper credit for just about anything lately....we bought our house last year so it was a little easier for us, but when it's right it will happen!!!!

GOOD LUCK TO ALL!!!!! Owning our own house has been a dream come true and I am so happy!

---

ahhh it must be great - i can't wait to stop renting!

not to toot our own horns but my FH and I have impeccable credit (thank god) so thankfully we have that going for us so we arent that worried about getting a loan....its just the timing is a little off but i am sure we can make it work if we have too....we may not, things could happen after the wedding which would be more ideal....but i like to prepare for worst case scenario because im paranoid

and this market is making me really nervous make me question if we should be doing anything at all....

ahhh it must be great - i can't wait to stop renting!

not to toot our own horns but my FH and I have impeccable credit (thank god) so thankfully we have that going for us so we arent that worried about getting a loan....its just the timing is a little off but i am sure we can make it work if we have too....we may not, things could happen after the wedding which would be more ideal....but i like to prepare for worst case scenario because im paranoid

and this market is making me really nervous make me question if we should be doing anything at all....

---

you should be proud that you have good credit!!!!
all i can say is that you don't want to rush into doing something just for the sake of it, but i'm sure you know that already ;) the market is bad right now, but if you are both in stable jobs and know your finances, I would def take advantage of the soft real estate market! house prices just keep dropping (and it is forecasted to stay this way until at least this time next year) and the mortgage rates are still holding at a good number! if you find something you love then do it! it will DEF be worth it in the end...but just remember to save money for those rainy days...like when we decided to move the dryer to the basement and it wouldn't fit, so we broke it and had to buy a new one...oopps!!!!

---

Posted by jennarose023



ahhh it must be great - i can't wait to stop renting!

not to toot our own horns but my FH and I have impeccable credit (thank god) so thankfully we have that going for us so we arent that worried about getting a loan....its just the timing is a little off but i am sure we can make it work if we have too....we may not, things could happen after the wedding which would be more ideal....but i like to prepare for worst case scenario because im paranoid

and this market is making me really nervous make me question if we should be doing anything at all....

---

you should be proud that you have good credit!!!!
all i can say is that you don't want to rush into doing something just for the sake of it, but i'm sure you know that already ;) the market is bad right now, but if you are both in stable jobs and know your finances, I would def take advantage of the soft real estate market! house prices just keep dropping (and it is forecasted to stay this way until at least this time next year) and the mortgage rates are still holding at a good number! if you find something you love then do it! it will DEF be worth it in the end...but just remember to save money for those rainy days...like when we decided to move the dryer to the basement and it wouldn't fit, so we broke it and had to buy a new one...oopps!!!!

---

that happened with our couch! we couldnt fit it in our new apartment, we ripped it, and had to buy a new one!

what makes me nervous is the interest rates....it seems like if real estate prices go down more or the prices stay at a low won't that make the interest rates go back up again? or no? i have no idea! i just want a good rate...

that happened with our couch! we couldnt fit it in our new apartment, we ripped it, and had to buy a new one!

what makes me nervous is the interest rates....it seems like if real estate prices go down more or the prices stay at a low won't that make the interest rates go back up again? or no? i have no idea! i just want a good rate...

---

the rates over the past 2 years have actually stayed pretty consistent...the average was around 6.5 when we bought and then it dropped to the lowest in a while around 5.75 and now it's around 6.25 so even though the housing prices have been continually lessening, the interest rates have been pretty consistent. That's what makes it a buyers market...if the rates go up to high, then it would cause the housing prices to drop too low since there would be even less buyers.
I'm no economist, but you should be pretty good for at least the next year. And you also have to remember that the rates they tell you, and the rates that you see online are estimates, until you lock in your rate (before you are ready to go to closing since they are only guaranteed for short periods of time...around 60 days...i think) you won't really know exactly what you will be at. They fluctuate every day.

I didn't read the responses so sorry if it's what other's are saying. This is my story:

We went for two different mort to avoid pmi... the little mortgage,, the DAY BEFORE CLOSING advised us that they NO LONG DO 2nd mort!!! So we ended up having to pay PMI through the first mortgage.

About 3 months later my mort bill was less money. When I called they said the appraisal came in and it was high so we didn't need PMI after all.

Two years or if the house appraises for more..that's when you can eliminate PMI

good luck!!!

ALSO...

slightly off the topic but just a bit of advice...

Know how much your taxes and homeowners ins. are! when you do your closing they do an estimate of the taxes in the neighborhood to figure out your escrow payments...make sure when you are ready to make your first mortgage payment that you do the math and check the numbers, otherwise you will get a notice 6-12 months later that they screwed up on the amounts and your escrow payment doubles or triples...also, you have to pay more into your escrow account then actually needed, some federal regluation that you must have a certain percentage of your total taxes & HI in the account at all times!

---

Posted by snwb08

didn't read the answers, but I put 15% down and the broker said I could either pay PMI or take out a junior loan for the rest... it turned out that it worked out cheaper for me to pay the PMI, so that's what I'm doing. It's a pain though - to get rid of it (at least in my case) I'd have to refinance b/c i have a 30 yr fixed loan.

---

see that is thing, we can do 10%, we can probably even do 15% depending on how much the closing costs are but to do 20% would be impossible.....its all because of the wedding - jericho terrace has our downpayment now

actually what is disgusting is that what we paid JT would be the 20% downpayment for a house!

i also wasnt able to pay a huge amount at once after the closing. I asked about this. You can give an early payment or pay 2 months at once, ive done that though.

Just ask your broker about this