by iphish2 » Sat Feb 20, 2010 01:40 pm
I heard that if you have owned homes in the past and have established a good payment history you may not need to take out PMI on your next home even if you do not have 20% down/equity. Is this true?
Posted: Sat Feb 20, 2010 01:45 pm Post Subject:
It's worth a shot...but I've never found it to be true...My husband and I have owned six or seven homes, have been able to maintain the highest credit rating you can get. We have always had to pay PMI unless we carried less than 80% on the note. You know that you can get it removed once you get to 80%. You just have to contact the mortgage company, believe me they won't tell you! :shock: I've had PMI on I think three or four homes in the beginning, and got them all removed when the balance was below 80%...
Posted: Sat Feb 20, 2010 04:55 pm Post Subject:
From what I read, yes some companies might waive PMI for people with good credit scores and less then 20% down. It appears that this results in a higher interest rate though. So while it may allow a person to get a loan without paying for the cost of PMI, over the long run it might cost more with the higher interest rate. Just something to consider.
Posted: Sat Feb 20, 2010 11:31 pm Post Subject:
Great point Todd, I'd never heard of the PMI being waived but I also haven't purchased a home in more than 10 years either :roll: and Lord willing I'll never purchase another that I don't pay cash for...makes perfect sense though that there would 'have' to be a price for this.
Add your comment