Quote:
Originally Posted by KC911
I know you're in the "biz", but please help me understand. I was approved for borrowing xxx amount way back when. The % never entered into the equation at all. Though I absolutely despise banks, I did work for a mega-bank way back when so I also received an "insider's" rate at the time...how does it work from your perspective (in a nutshell)? Do you think "saving up to the 20% mark" (while paying rent) trumps the pretty minimal PMI and a slightly better loan rate? I don't...at least it sure didn't for me. Not arguing with a "pro"...I just know that one size doesn't fit all either....YMMV
ps: Not taking advantage of the historically low interest rates and rock bottom housing prices that begain to climb about one year ago would not make sense to me. Slak is still in a great position...he's gonna be just fine...I'm just asking?
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PMI is a hard and fast rule for any single loan you take out that has less than 20% down. They either give you PMI or raise the rate to compensate it for it.
Lots of people settle for PMI because they have no choice.. Anyone with assets usually puts the 20% or more down, and gets the best possible deal and fastest approval.
Anytime you go below 20% down, more restrictions, harder qualification applies....
PS the only real low down games in town anymore are FHA, VA, and 5% conventional programs-
all of which suck rate and payment wise (except, possibly VA)and are no real deal compared to putting an honest 20% down.. Putting less than 20% down will make the payment jump considerably.
Remember, that you might've gotten a "good deal" but the rates and pricing are still within a specific bracket based on your downpayment. Less down payment = different pricing bracket, and it sucks these days due to the housing and economy situation.
rjp