Is there anyway to get rid the PMI on a FHA Loan that will closed this month? Is this a good deal?
A friend is refinancing. He was approved for an FHA loan @ 5.75%. He is paying 2.75% points. They are including 2,500 up front PMI fees to be financed in the mortgage. In addition, he is being asked to pay $60.00/PMI. His house is worth at least 266,000. He is obtaining a 152,000 loan. Is this a good deal. The credit was less than perfect.
Tags: anyway, closed, deal, good, Loan, Month, there, this
2011/05/06 at 21:51:11
If your friend thinks it is a good deal, than they are already correct. However, a conventional mortgage would be the better way to go, no upfront MIP and no monthly PMI the loan to value is so low that your friend should be able to pick and chose from a variety of programs the 2.75 points are nothing but lender fees, as par rate on fha loans are currently between 5.75% and 6.00% I am a mortgage lender and I would love this deal, as your friend is paying a lot of fees that he/she shouldn’t be paying
2011/05/06 at 21:47:16
The only way to get rid of PMI is to put at least 20 % down on a house or when you have enough equity in the house to equal at least 20%.
2011/05/06 at 21:33:23
PMI is a waste of money. I am a branch manager that works for a direct lender that offers no PMI up to 95% LTV. Huge savings.