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ckone
LIF Adult
Member since 8/06 3014 total posts
Name:
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Does anyone pay PMI?
The rate of the mortgage will be 6 % and the HELOC would be 8.75%. If I pay PMI - it might be for one year.
I'm undecided. I'm leaning towards the PMI.
What are your experiences?
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Posted 3/26/07 4:46 PM  |
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MissJones
I need a nap!
Member since 5/05 22150 total posts
Name:
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Re: Does anyone pay PMI?
We do...we have a co-op and they don't do 80/15/5, so since we could only do 10%, we had to do the pmi. it's $60/month, so not too bad, but I want it done with.
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| Posted 3/26/07 4:47 PM |
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chris605
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Member since 5/05 3206 total posts
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Re: Does anyone pay PMI?
I do.. It was cheaper to pay that then to get a higher rate mortgage - Most mortgage companys make you keep PMI for 2-years...
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| Posted 3/26/07 4:55 PM |
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lorich
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Member since 6/05 9987 total posts
Name:
Grammie says "Lora Gina"
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Re: Does anyone pay PMI?
We don't do either, but definitely work out the numbers. Sometimes it's much smarter to just pay the PMI.
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| Posted 3/26/07 5:01 PM |
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BriBri2u
L'amore vince sempre
Member since 5/05 9320 total posts
Name:
Mrs. B
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Re: Does anyone pay PMI?
Posted by MissJones
We do...we have a co-op and they don't do 80/15/5, so since we could only do 10%, we had to do the pmi. it's $60/month, so not too bad, but I want it done with.
Same for us...
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| Posted 3/26/07 6:11 PM |
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NJmom
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Member since 8/05 4987 total posts
Name:
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Re: Does anyone pay PMI?
we don't. we have a HELOC also. It's cheaper that way for us and I also like that as we pay down the principal our monthly payments actually decrease. If you put it all into one mortgage your payments would always stay the same. The other nice advantage of a HELOC is that you can always withdraw money from it if you need to (well only up to the amount of principal you have paid down.
Here's a really good calculatorI found that compares your payments with PMI, a PMI buyout, and with a piggy back mortgage (which i found actually calculates the amount a little bit higher than a HELOC). From there you could probably figure out what would be best.
They have a lot of other really useful calculators at
goodmortgage.com
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| Posted 3/26/07 6:42 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Does anyone pay PMI?
we pay PMI on our co-op. as you notice, co-op its harder to get a second loan to cover the difference but at the end depending on how long you have to pay pmi, its even or less.
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| Posted 3/26/07 6:54 PM |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: Does anyone pay PMI?
we pay PMI's. It worked out cheaper for us than getting 2 mortgages. We pay PMI's until 20% of our mortgage is paid off which should be in about 2.4 years. Then our mortgage will drop about $150!! Can't wait!
Message edited 3/27/2007 9:38:11 AM.
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| Posted 3/27/07 9:37 AM |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: Does anyone pay PMI?
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| Posted 3/27/07 9:37 AM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Does anyone pay PMI?
If you're still paying PMI and you've been in your house/co-op a few years, you should see about getting it re-appraised. The increase in market value alone may be enough to cover the 20% equity necessary to remove PMI.
Talk to your lender and find out what the procedures are for removing PMI. They typically don't make it easy - its free money for them. But its in your best interest to find out.
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| Posted 3/27/07 9:49 AM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Does anyone pay PMI?
Posted by kerrycec03
we pay PMI's. It worked out cheaper for us than getting 2 mortgages. We pay PMI's until 20% of our mortgage is paid off which should be in about 2.4 years. Then our mortgage will drop about $150!! Can't wait!
you may be able to remove it earlier - you need 20% equity in the house, not 20% of your mortgage paid off. So if you house value has increased since you purchased, that will help.
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| Posted 3/27/07 9:52 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: Does anyone pay PMI?
we'll be paying pmi, that's why i'll be pushing making extra payments toward principle.
i'm hoping to only do it for 2yrs
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| Posted 3/27/07 10:41 AM |
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