Would first time home buyers be penalized for putting less than 10% down? Are there any additional fees that would have to be paid on a monthly basis? I've seen a few posts about a PMI...does that have to do with putting down a 'small' down payment? If there is already thread on this I apologize...I would appreciate it if someone could bump it for me if it exists. Thanks a lot!
Summerbride04
Posted:
Member since
Re: Spinoff to down payments...are there penalties
As my broker explained to me nowadays there are ways of getting around PMI however, the less you put down the more of a 'risk' you are to a lender and this may prevent you from getting the lowest interest rates.
FTRBRIDE
Posted:
Member since
Re: Spinoff to down payments...are there penalties
Posted by Summerbride04
As my broker explained to me nowadays there are ways of getting around PMI however, the less you put down the more of a 'risk' you are to a lender and this may prevent you from getting the lowest interest rates.
Actually, we're only putting down between 6-7% total- we're getting a fixed 1st and 2nd mortgage. We're avoiding PMI and the higher jumbo mortgage interests rates this way, and we are getting the lowest interest rates available- obviously the 2nd mortgage has a slightly higher interest rate than the first b/c of creditor priority, but it's only a tiny bit higher. If you have good credit you won't have a higher interest rate no matter how much you put down.
The only payments we will have each month are slightly higher mortgage payments b/c we financed more, but no additional charges.
Your closing costs will be slightly higher, b/c part of it is calculated based on how much you're borrowing.
