First time trying to get a mortgage. I’ve heard that I should stay away from the big commercial banks and try an online mortgage firm or a regional bank. I’m in Los Angeles and majority of my income comes from RSUs. - Been at Snap for longer than a year - 1M- 1.5M range w least amount down, like 5% - 200k base - 380k offer TC L4 - 700k inflated money printer TC - ~2MM NW (mostly nfts/crypto; 600k fiat/stocks) - no debt - looking to buy sometime Q2-Q3 ‘22
wouldn’t you trigger pmi with only 5% down?
Yeah but I think it’s less than I can earn on the market per month
Big banks are best if you have a relationship discount. In general shop around or start with a broker and see who has the best rates and deal. Put 20% down obviously.
why 20% down? with 5% on a 1mm house that's 150k to invest instead, 8% yields 12k annually. pmi is like $300/month on those numbers, ~3% interest on the 150k extra loan is 375. I guess you'd have to ask if you'd take that extra risk for maybe a couple hundred bucks a month. Doing the math for this reply i think you're right actually lol
Pmi for 75% of the loan + higher interest rate + less likely to win a bid + higher closing costs is generally a bad deal. I'm all for mortgages and keeping them as long as possible but 20% is unfortunately usually the min.
Go with a broker, they will compare multiple rates. Also check with the big banks they can be competitive. Lenders will care about base. Most won’t count RSUs until you’ve been with an employer for more than two years and then at a discount. 5% down might be a stretch. Most lenders will want more down. Plan for 20% down and you won’t be disappointed.
Loan shark
There was post here for US Bank for 10% down and no PMI
I've no inputs on your question. But, can you share why you're only looking at putting 5% down? I'm interested in buying in Bay Area and am waiting to save 20% down after emergency savings.
I’d rather have 100k on the market and pay 600 a month in PMI
Wouldn't the 5 percent affect your interest rate?. I see 20 percent down has better rates