Yeah, refi a fucking sub 5% mortgage :bowdown:
Guys, with FHA it’s as simple as this…
Including your 3.5% down, expect to pay almost exactly 10% of the purchase price of the home @ closing. That includes lawyer fees, HO insurance etc etc.
I just bought my first house and closed 3 weeks ago. Jack posted correct information about MPI.
Afaik the dollar amount is the same individual or joint… full deduction to 100k and phased out at 109k adjusted gross. I don’t see too many individuals on this forum making that. Most families in WNY don’t make that. Why worry about something you can deduct? Imo the question becomes if you are below the income limit and are in a position to cough up the cash at the time of purchase, do you drop the 20% so you don’t pay PMI (remember you can deduct the full amount) or do you hold on to your cash and do something else with it given the rates that are out there?
Obviously I wouldnt refi that little. I will have much more of equity into my home after 5 years. It makes no sense to throw more money at my house within the 5 years knowing that I still have to pay PMI every month no matter what. I have the ability to own 20% of my mortgage by next year. If I wanted to, I could just save up until next year and have my 20% down and avoid PMI, but I just got a smokin’ deal on the house I bought and I honestly couldn’t pass it up.
Being in sales you should know that in the summer months, you can make $15k in one month. Maybe cars aren’t the same, but I have the ability to do that.
Well, it isn’t based on what I’ve read. If you’re married filing single, it is $50k and $100k up to $109k otherwise. Ballin in WNY != Ballin on NYSpeed… 2 people with “decent” jobs clear that.
Um… say it was $2400 annually in PMI ($200/mo)… that would be, um, maybe $800 back on taxes? Where is the $1600 benefit coming from? At that point you have to itemize as well which isn’t something most people do.
Also, 20% down would be 20% less mortgage.
when i closed on my house in March we mortgaged 175k…our PMI is 75.00 a month…now we did covnetional not FHA…and from what I am told once 20% equity is in the house we can get rid of the PMI…i think its 20% of the selling cost …i will have to check whether its selling cost or bank assest value…
BTW jack arnt you in wheatfield too??
The house I just sold is in Akron. The apt I’m moving into is in Cheektowaga.
All of my references to PMI have been FHA based. I haven’t even started on conventional.
Once you hit 20% you can cancel the insurance at the bank. If you don’t, they wait until 22% and cancel it for you.
FHA requires up front mortgage insurance on all loans of 1% now(down from 2.5%). Monthly MIP(mortgage insurance) for 20-30yr FHA is going to be .011-.015 depending on LTV… Therefore a home loan of 200k you’d be expecting to pay 184 dollars a month in MIP which is mandatory for 5 years.
FHA 15yr MIP .0025 would be 41 dollars a month and drop off once the home is under 78% LTV or 5 years which ever is sooner.
Conventional PMI drops off at 78% LTV no matter what. You can request it be taken of at 80%, but you’d have to pay for an appraisal.