FHA Jumbo Loan - Monthly Mortgage Insurance NY State
Details: Looking at few properties in NY ( Putnam & Westchester County ) and will be finalizing soon.. We will be taking a loan around $700K. We will like to do 3.5% Down and therefore it will puts us in a Monthly Mortgage Insurance [ MMI] bucket. Could anyone clarify details on MMI ?Also there are some changes happening in MMI policy June 2013. If we close a deal before June then could we avoid this new rule.With higher home taxes in NY [ $25K annually] with MMI - it puts lot of burden on home buyers. Is there anyway to reduce MMI/PMI [ apart from ofcourse paying 20% down - we donot want to do more than 3.5%]? Are there any better mortgage alternates out there?
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
FHA MI is at a factor of 1.35% of the loan amount annually, divided by 12 months... in your scenario it's $700K x .0135= $9,450 / 12= $787.50 is your monthly MI through FHA... FHA beginning in June will issue loans with MI being paid for the life of the loan. It's based on when your case number is ordered, not when you close. If you have an accepted contract on a home now, then the case number can be ordered inside of 24 hours, so your ok there.. If you have VA benefits available, then you could go VA and not pay any MI at all.. outside of that, if you don't have a large down payment, you will be stuck with the high MI rates.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Walter Gorman (Walter_Gorman)
#87 ranked lender in New Jersey - 4 contributions
in June the MI will be on forever but if you have a case number already you should be ok. Trying to get around MI on that size of a loan is gonna be pretty hard unless you do lender paid mortgage insurance program. We do a lot of loans in that area and unfortunately its the same MI across the board its all based on loan amount. If you need any other help you can contact Walter @ 201-438-9500 ext 11.
Steven Cook (stcookmortgage@gmail.com)
#37 ranked lender in Washington - 256 contributions
If there is any way you can get up to 5% down payment -- and can find a Local Licensed Mortgage Broker who does Jumbo loans, you should be able to go conventional, which would be a lower Mortgage Insurance payment (maybe not by much, but as you know every little bit makes a difference.) Also, currently, with the conventional mortgage insurance it does go away when you get to 78% LTV.
Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions
Several good explanations are provided on this forum.
James Mazzola (Mazzola)
#109 ranked lender in New Jersey - 314 contributions
in June the MI will be on forever
Thanks all for your valuable inputs.Few things:1. So paying 10% and taking conventional loan instead of FHA is an option to avoid PMI/ MIP2. If I want to avoid MIP in FHA loan. With 5% in hand can I borrow 15% at a higher interest rate from somewhere that I could pay on monthly basis over 8-10 years period. I do remember a friend few years back did 80/20 loan. But things have changed since then. Please let me know your thoughts.
Steven Cook (stcookmortgage@gmail.com)
#37 ranked lender in Washington - 256 contributions
You will probably find it to be impossible to do the 80/15 program in today's marketplace. The only possibility would be if there is a local lender who is servicing their own paper -- keeping the loan in their own portfolio. Even those who do that usually want their paper to be salable if necessary.
Ask our community a question.
Get an answer
Related Questions
