[stosh]

..and you'll pay a hefty monthly PMI payment until you hit the 20% mark... right?

It's not bad thru the first time buyers program... minimal PMI comared to most but if I did the supposed 0 down I would.

 

[I Are Baboon]

..and you'll pay a hefty monthly PMI payment until you hit the 20% mark... right?

We took out a 2nd loan to avoid PMI. 5% down, 80% 1st loan, 15% 2nd loan.

 

[MikeD]

Well, it *is* Bank of America.........

They don't make all that money by giving it away in interest to its depositors.....

-S.S.-

But why would standard savings (and even my checking account) be at a higher rate of return than a money market...? I guess BofA offers limited checking services with a money market, but still...is it just a current interest rate thing?

MD

 

[stosh]

We took out a 2nd loan to avoid PMI. 5% down, 80% 1st loan, 15% 2nd loan.

How's that work exactly?

 

[N8 v2.0]

We took out a 2nd loan to avoid PMI. 5% down, 80% 1st loan, 15% 2nd loan.

That'll work... was the rate on your 2nd decent?

 

[I Are Baboon]

That'll work... was the rate on your 2nd decent?

6.25%

 

[narlus]

We took out a 2nd loan to avoid PMI. 5% down, 80% 1st loan, 15% 2nd loan.

interesting strategy.

 

[I Are Baboon]

How's that work exactly?

When it comes time to shop for a mortgage, just let the bank or mortgage company or whoever you are using that you are interested in a 2nd loan for the cost minus your down payment. The rate is usually higher than your primary loan, but it beats paying PMI.

 

[stosh]

When it comes time to shop for a mortgage, just let the bank or mortgage company or whoever you are using that you are interested in a 2nd loan for the cost minus your down payment. The rate is usually higher than your primary loan, but it beats paying PMI.

Ok sounds good!

 

[Crashby]

I'm saving money in my savings account with like .0000001% interest which isn't the greatest.

I want to save like $10k+ what is the best type of savings account for me to do this with.

I made a quick little spreadsheet that automatically calculates your monthly balances based on different interest rates and monthly contributions.... *ok, Im a nerd.... PM me with your email adress if you want it.

 

[SkaredShtles]

interesting strategy.

This is an excellent way to avoid PMI. *AND* you get to deduct the interest on the second mortgage to boot.

-S.S.-

 

[narlus]

6.25%

did you have to pay any points or related closing costs for the 2nd loan too? the typical PMI seems to be between a half and one percent, so i guess you have to run the numbers and see what's better.

 

[SkaredShtles]

did you have to pay any points or related closing costs for the 2nd loan too? the typical PMI seems to be between a half and one percent, so i guess you have to run the numbers and see what's better.

Generally the second is originated for a fairly nominal fee.

Well, it's nominal WRT the mortgage amount.

-S.S.-

 

[I Are Baboon]

did you have to pay any points or related closing costs for the 2nd loan too? the typical PMI seems to be between a half and one percent, so i guess you have to run the numbers and see what's better.

Like Shuttles said, we just had your basic fees for the 2nd loan (I can not remember how much exactly...maybe $300?). There were no points involved.

 

[stosh]

Like Shuttles said, we just had your basic fees for the 2nd loan (I can not remember how much exactly...maybe $300?). There were no points involved.

awesome!!!!

THis is great advice...

 

[N8 v2.0]

did you have to pay any points or related closing costs for the 2nd loan too? the typical PMI seems to be between a half and one percent, so i guess you have to run the numbers and see what's better.

Some companies will do a 'one-time' closing for both loans.

 

[I Are Baboon]

awesome!!!!

THis is great advice...

MtnBikerChk is a mountain of information on exactly how our mortgage worked, so hopefully she'll chime in tonight (she's too busy at work to post).

 

[stosh]

MtnBikerChk is a mountain of information on exactly how our mortgage worked, so hopefully she'll chime in tonight (she's too busy at work to post).

Ok cool! I won't be around till tomorrow afternoon so I'll check this thread again.