I have the oppurtunit to buy a house with 3% down with no PMI.
I can also afford to put 20% down. I can afford the monthly payments what would be the best way to go? by christopher.j.boh... from Custer, South Dakota. Jan 12th 2011
Kelly Southerland (southerlandpfg)
#53 ranked lender in Texas - 2 contributions
The loan with 3% down will have mortgage insurance some how unless you have a 2nd lien. Any loan with less than 20% down will have mortgage insurance. If you are not paying the PMI, then the lender is and you are getting a higher rate for the life the loan. I suggest putting the 20% down or doing a first and second lien combination with 5% or 10% down to avoid PMI all together. There are pros and cons to both options depending on your specific financial situation.
Kelly Krauth (KKrauth)
#1 ranked lender in New Mexico - 28 contributions
USDA and VA loans do not require PMI but they do have Upfront fees respectivly. I would put the 20% down which would also save on interest over the life of the loan in addition to qualifying you at a better rate.
Dan Paladin (dpaladin)
#356 ranked lender in California - 792 contributions
Always better to go with the larger down payment and save interest over the life of your loan. The term can be set up to best fit your specific needs. For a complete no obligation custom mortgage consultation feel free to contact "Dan The Loanman"877-369-4319
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