No PMI with 15% Down?

[ub4me]

Hello,
Does anybody know any bank that doesn't require PMI with 15% down payment?
If I put down 20%, I just remain 2 grand in my account. So if there is any bank doesn't charge PMI with 15%, I will definately go with it.
Thanks in advance.

Pianoman

 

[Shockwave]

Use the rest of savings for a dictionary?

Seriously though, I think 20% is the set rate. I'd also advise cleaning out your savings to get it, PMI sucks. :frown:

 

[welst10]

I am sure there quite a few banks out there that dont require PMI if you put down 15% or even 10%. INGdirect is one of them. I only put 10% down and I got no PMI thru my credit union.

 

[Shockwave]

Originally posted by: welst10
I am sure there quite a few banks out there that dont require PMI if you put down 15% or even 10%. INGdirect is one of them. I only put 10% down and I got no PMI thru my credit unin.

:Q
Sweet!!!
Time to refi I think!

 

[ub4me]

Yeah, I know that.
So I was wondering if any bank doesn't require PMI with 15% down.

 

[ub4me]

Originally posted by: welst10
I am sure there quite a few banks out there that dont require PMI if you put down 15% or even 10%. INGdirect is one of them. I only put 10% down and I got no PMI thru my credit union.

But INGdirect allows 45 day rate lock from the date I signed the purchase agreement.
I signed it on June 1, and only way I can go with INGdirect is just floting the rate.
But I think it's too risky.

Anyway I'm planning to close the loan around middle of August.

 

[Vic]

80/5/15 -- 80% 1st, 5% 2nd, 15% down

There are many lenders and loans out there where you can avoid MI. The difference is that you just pay for it by means of slightly higher interest. As interest is tax deductible, however, and MI is not, it is almost always advisable to pay the interest instead of the MI.

edit: I would advise floating (with a close eye on the market) for the next couple of weeks. Rates are trickling down. We won't go as low as we were, but there is a nice dip in the works right now.

 

[homestarmy]

$2k isn't enough?

 

[ub4me]

Originally posted by: Vic
80/5/15 -- 80% 1st, 5% 2nd, 15% down

There are many lenders and loans out there where you can avoid MI. The difference is that you just pay for it by means of slightly higher interest. As interest is tax deductible, however, and MI is not, it is almost always advisable to pay the interest instead of the MI.

The house price is $118K, so 5% will be $5900.
In my state, Kentucky, I think, the minimum amount of Home equity loan is $15K.
So I cannot consider it.

 

[ub4me]

Originally posted by: homestarmy
$2k isn't enough?

I need moving expenses, need to buy some appliences and furniture. So I need more than that.

 

[welst10]

Originally posted by: homestarmy
$2k isn't enough?

$2k is way under for closing costs. Also there is moving, fixing things at new home, furnitures, etc.

 

[ub4me]

Originally posted by: welst10

Originally posted by: homestarmy
$2k isn't enough?

$2k is way under for closing costs. Also there is moving, fixing things at new home, furnitures, etc.

$2K is after downpayment and all closing costs including prepaid items.

 

[Vic]

Originally posted by: ub4me
The house price is $118K, so 5% will be $5900.
In my stage, Kentucky, I think, the minimum amount of Home equity loan is $15K.
So I cannot consider it.

Hmm... usually the minimum loan amount requirement is waived for a piggyback combo loan, but... you could do an 80/15/5 (80% 1st, 15% 2nd, 5% down) with the 15% 2nd as a Home Equity Line of Credit (HELOC).
HELOC's don't have fixed payments, but instead the payment is based on the amount owed. After the loan closes, you pay down the additional 10% on your own and the payment will automatically adjust to reflect the lower balance.
Even though rates are steadily going up (over the long run, despite some dips here and there), I would recommend the HELOC for you anyway because the adjustable rate means you will get a lower rate up front (as low as Prime -- 4.25% now -- depending on credit), and the small amount of that loan means you will probably pay it off early anyway.

 

[StephenM]

Wells Fargo has an 80/20 loan (no downpayment) with NO PMI.

80% is a standard 30/15 year fixed rate mortage,
20% is variable home equity line of credit.

Whether or not they offer it depends on your credit score and the real estate market in your area. It is, after all, somewhat high-risk for them since you're essentially putting 0 down. It sometimes goes by the name "80/20 Single source loan". It costs nothing to call and see if you qualify. As others mentioned, you'll likely pay slightly higher interest (worth it IMHO).

 

[ub4me]

Originally posted by: Vic

Originally posted by: ub4me
The house price is $118K, so 5% will be $5900.
In my stage, Kentucky, I think, the minimum amount of Home equity loan is $15K.
So I cannot consider it.

Hmm... usually the minimum loan amount requirement is waived for a piggyback combo loan, but... you could do an 80/15/5 (80% 1st, 15% 2nd, 5% down) with the 15% 2nd as a Home Equity Line of Credit (HELOC).
HELOC's don't have fixed payments, but instead the payment is based on the amount owed. After the loan closes, you pay down the additional 10% on your own and the payment will automatically adjust to reflect the lower balance.
Even though rates are steadily going up (over the long run, despite some dips here and there), I would recommend the HELOC for you anyway because the adjustable rate means you will get a lower rate up front (as low as Prime -- 4.25% now -- depending on credit), and the small amount of that loan means you will probably pay it off early anyway.

I think your suggestion is a good idea as long as 5% downpayment rate is the same to 20% down rate.

 

[Vic]

Originally posted by: StephenM
Wells Fargo has an 80/20 loan (no downpayment) with NO PMI.

80% is a standard 30/15 year fixed rate mortage,
20% is variable home equity line of credit.

Whether or not they offer it depends on your credit score and the real estate market in your area. It is, after all, somewhat high-risk for them since you're essentially putting 0 down. It sometimes goes by the name "80/20 Single source loan". It costs nothing to call and see if you qualify. As others mentioned, you'll likely pay slightly higher interest (worth it IMHO).

Most banks and lenders have this program (or one similar). Be advised that in order to qualify for a piggyback Fannie/Freddie-conforming (meaning to get the best rates and terms), you will most likely need a minimum 700 middle credit score and a maximum 45% back-end debt ratio.
Based on the fact that the OP does appear to want to put some money down, I have a feeling that getting a low payment may be an issue for him. If payment is not that big of an issue, and the whole idea is just to avoid MI, then go for an 80/20/0 or 80/15/5 if you can, and then keep your savings. Why use your own money when rates are still so low?

edit: Depending on the strength of your credit, there should be very little difference in rate. You pay for it in the 2nd mortgage.

 

[ub4me]

Originally posted by: StephenM
Wells Fargo has an 80/20 loan (no downpayment) with NO PMI.

80% is a standard 30/15 year fixed rate mortage,
20% is variable home equity line of credit.

Whether or not they offer it depends on your credit score and the real estate market in your area. It is, after all, somewhat high-risk for them since you're essentially putting 0 down. It sometimes goes by the name "80/20 Single source loan". It costs nothing to call and see if you qualify. As others mentioned, you'll likely pay slightly higher interest (worth it IMHO).

My credit score is 740, so I think I don't have a problem to get a loan.
Anyway, Wells Fargo is any good? I think their rate is a little bit higher than other lenders.

 

[ub4me]

Originally posted by: Vic

Based on the fact that the OP does appear to want to put some money down, I have a feeling that getting a low payment may be an issue for him.

Yes! You got it.
I'm just trying to get better deal as all you guys do.

 

[Vic]

Originally posted by: ub4me
My credit score is 740, so I think I don't have a problem to get a loan.
Anyway, Wells Fargo is any good? I think their rate is a little bit higher than other lenders.

You should have no problems then, provided everything else is in order. Like I said, many lenders and brokers out there offer these programs. Shop around.
But (and I tell this to everyone) more important than getting the rock-bottom lowest rate is working with a lender and loan officer that you can trust and will give you good advice. Someone who will get the job done right and within your timeframe, who will lock your loan at the right time (rates have been very volatile of late), who will take your concerns seriously, and who will not drop any surprises on you at the closing table.
If you find someone like that, I recommend going with them even if they're a quarter percent higher. It's worth it IMO. Unless you don't mind losing out on the house because the lender wasn't ready to close on time, or finding out that your rate went up at the closing table because they didn't lock when you asked them to, etc.

edit: hey, this is what I do for a living

 

[ub4me]

Thank you VIC for your suggestions.

edit: hey, this is what I do for a living

Really? So, are you a mortgage broker?

 

[Vic]

Originally posted by: ub4me
Thank you VIC for your suggestions.

Really? So, are you a mortgage broker?

You're welcome.

And yes, I am but sorry, not in Kentucky just out west.

 

[SUOrangeman]

I haven't seen anyone come close to this:

http://www.naca.com/

No down payment
No closing costs
No PMI
No income limit
1% below market rate, 30-yr fixed
Available in numerous urban "centers" (big/medium cities) country-wide

However,

Requires 5 volunteer activities per year (as few as 2 hours for each activity)
$325K loan cap (potentially bad for expensive/competitive areas like NoVA)
Cannot "sweeten" you contracts with your own additional funds
Up to $50/month (for 10 years max) to a stabilization fund administrered by the program
Must have home inspection (often waived by non-program buyers in overly competive regions/costs paid out-of-pocket)
Geographic "limitations" if household income exceeds certain amounts
Not adequately staffed (at least in the DC area)
Seemingly micro-managed by CEO & his wife

The last two points are the main reasons why my wife and I are still house-less two weeks after our original settlement date. The out-of-pocket costs to us thus far have been $375 for home inspections and a $5K deposit (which is really a big "PICK MY CONTRACT!" flag). We will get %65 or more of our deposit back a settlement, as only 6 months of taxes and property-specific fees are deducted. Oh yeah, we may be dealing with a shady seller, so that hasn't helped either.

-SUO

 

[ub4me]

Hmm..
It seems that Louisville is not included in their service area.