does it depend on ltv or my credit score? i guess i mostly want to know if mortgage insurance will decrease with a bigger down payment on a conventional loan or not. by krani784623364 from Terre Haute, Indiana. May 29th 2014
That is a tough one to answer because it does depend on your credit score, debt to income and loan to value. But you are right, the bigger the down payment the lower the mortgage insurance rate will be. Mortgage insurance usually changes every 5% in loan to value. For instance you will pay less in mortgage insurance with 10% down payment than you would with a 5% down payment. Conventional does have an option that you can buy out of your mortgage insurance as a one time payment at closing. The minimum down payment would have to be 5% and the cost to buy out of the mortgage insurance would depend on your credit score, loan amount, debt to income ratio, loan to value and if you are self-employed or not. I would contact a local loan officer and have them review all of your options with you to see what is the best direction. Best wishes, Sean
It's a reflection of your LTV - or Loan to Value. The bigger your down payment, the smaller the mortgage insurance premium. Of course, if you go with an FHA loan, you will forever pay mortgage insurance! But know this about mortgage insurance - every bit of it you pay becomes a tax deduction on your next year's Federal Income Tax return. It actually helps you decrease your income tax burden to the Gov't. It's not at all as bad as people think it is, but yes, it does decrease with a larger down payment from the get go.Call me or email me - 317/450-8394; jasbury@winterwood.net - if you want to discuss this further. Or visit me at my website: www.winterwood.net/joel-asbury-app and go from there.
Yes, yes and yes. With that being said, make sure you understand the value of your money and the tradeoff of a larger down payment.
Speak with a qualified mortgage professional as they will need your specific scenario (i.e. credit score, loan-to-value, loan amount, zip code) to give you more accurate details of the amount of potential mortgage insurance.
It does depend on ltv. Yes it will decrease with a bigger down payment
I posted the last comment but it didn't post my information along with it. I think what you want to see are a few scenarios. I would love nothing else than to help you figure this out. Go ahead and give me a call at your convenience. I can help you understand this in more depth for whatever situation you are looking at. I look forward to it!Joel AsburyLoan OfficerWinterwood MortgageServing Indiana Since 1992
Mortgage Insurance premiums decrease based on the amount of money you put down on a house - YES! And yes, they are risk driven - so you aren't getting that answer here. Enjoy the house buying process.
There are about 6 major mortgage insurance companies... while all similar, all are different. We shop your file to all of them to give you the best deal. Understand PMI is based first on a sliding scale of loan-to-value. The more you put down, the cheaper the costs. Next, they look at credit scores, prior bankruptcies, debt-to-income ratios and more to give you your final costs. Your loan officer will be able to go over the numbers for your individual situation. In MN, SD, and WI, visit www.Minneapolis-Mortgage.net
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