10% down cancels PMI?
A friend of mine who works in a lending office is claiming that a new rule (about 10 days ago) is that now 10% down payment is enough to cancel PMI on conventional loans. I did my research and found absolutely nothing online that supports this, but part of me is hoping this is true lol. Anyone heard something similar? #mortgage #housing #downpayment #PMI
Based on my prior knowledge and 30 seconds of googling, you can cancel pmi when you’re at 80% loan-to-value. I believe this number is determined by the government body from which the loan originates. Edit: your friend may be referring to an 80-10-10 piggyback loan. It technically doesn’t require pmi with 10% down, however it also sounds like there’s plenty of opportunity for you to get screwed going this route with fees.
In the middle of a refi and this is *checks notes*…bullshit
I got 10 percent down with wells Fargo and no PMi. So it's true
Did you pay a higher rate?
Slightly higher
nope
there are many ways to avoid paying mtg ins with less than 20% down but if you have a present loan with mtg in on it - you will need 20% of equity before you can ask servicer to eliminate it - you will also likely need to pay for an appraisal
Years ago, I did an appraisal to eliminate PMI. They actually refunded a couple of months of premiums .. which more than paid for the appraisal
It might be true but do your calculation. If paying higher rate of interest over 30 years is worth it.
Depends on which lender and on your financial info. This is not usually publicly advertised.
I’ve heard the same thing from my lender. Based on my very surface level understanding, some jumbo loans will waive mortgage insurance while providing better rates if you put 10%. Will look into it and may go for this route.
many ( most ) jumbo loan programs don't have mortgage insurance
1:10 leverage, what could go wrong or 2008 was just an anomaly. Anyways, ask your friend in lending to guide your application
Eh. 1:5 leverage what could go wrong. What's another factor of 2