Taxes, PMI, insurance, etc

[Chili]

Well, if your value increases substantially or you make extra payments (enough to get you to the necessary LTV), and the value can be supported by an appraisal, you 'could' refi into a conventional mortgage and drop the PMI. Of course, who knows what rates would be like then compared to now, and you would also have to factor in closing costs.

But like SVT Lurch said, that is the price you pay for not being able to pony up the 20% down.

I have a VA loan, so I don't pay monthly mortgage insurance, but did have to 'pay' the VA funding fee (1.25% if I remember right) when I initially bought. The idea is essentially the same. The good thing about that, at least when I closed, is that I was able to finance that in the loan and the VA loan only required $1 out of pocket at closing. And since I covered some of the upfront stuff out of pocket, I actually got money back at closing.

[Chili]

Another option you used to have (numbers may have changed some) is to do a conventional mortgage with a second mortgage. You put some money down, have a first mortgage at 80% LTV, and a second mortgage for the rest. The downside is that you have a higher rate and lower amortization term for the second, but the good thing is, once you pay off the second you don't have to do anything else because you don't have mortgage insurance.

An example would be 80% first mortgage, 15% second mortgage and 5% down. The first mortgage would be at the market rate for a 30 year fixed, the second would be at a sub prime rate (couple percent higher) for 15 years.

It's been a long time since I was a mortgage loan officer (left that in 1999), but I used to do 80/15/5's and 80/10/10's all the time. But like I said, I don't know if that kind of thing is still offered with all of the changes over the last 5 years or so.

One of my brothers did the 80/15/5 back around 2000. He consistently paid extra on his second mortgage and paid it off in a couple of years, then only had the first left. That said, he couldn't do an FHA on the house he bought back then because it was over the FHA loan limit.

[talisman]

I'm really grateful I got all my house shit out of the way finally. Watching friends go through the headaches right now, and it's still all too fresh in my memory. 14.5 years and this baby is all mine!

[Chili]

I'm really grateful I got all my house shit out of the way finally. Watching friends go through the headaches right now, and it's still all too fresh in my memory. When I sell this house in 5 years I will have a lot of equity!

Fixed..

Seriously though, that's awesome. And you have already done some good improvements on the place!

[talisman]

Fixed..

Seriously though, that's awesome. And you have already done some good improvements on the place!

Shit, I'm retiring in this thing. Count on it. By the end of this year I hope to have about 80% of the renovations done, then I'll just sit back and enjoy it and take the money I'm no longer sinking into it and put it towards the principle. If I'm lucky I'll have it paid off in 11-12 years. Buying the 5.0 put a dent in the original plans, but the 99 was falling apart on me.

[DON SVO]

When do you close, anyway?

24th.

[Baron Von Crowder]

I'm really grateful I got all my house shit out of the way finally. Watching friends go through the headaches right now, and it's still all too fresh in my memory. 14.5 years and this baby is all mine!

Ill have my house and both cars paid off the day I turn 40. At least that is the plan. If one of the daily's gets totaled, then that might not be the case.

[talisman]

Ill have my house and both cars paid off the day I turn 40. At least that is the plan. If one of the daily's gets totaled, then that might not be the case.

Damn, that would be nice. If I go the full 15, it would be a few days after I turn 51. Hope to semi-retire after it is paid off.

[Baron Von Crowder]

Damn, that would be nice. If I go the full 15, it would be a few days after I turn 51. Hope to semi-retire after it is paid off.

If the cars dont kick off within the next ten years, we will be done early. Her highlander is only at 70k and my dodge at 136k. Hope we can nurse them along, since hers pays off this year.

[SVT Lurch]

I have a VA loan, so I don't pay monthly mortgage insurance, but did have to 'pay' the VA funding fee (1.25% if I remember right) when I initially bought.

If you're putting 10+% down, yes. Can be as high as 3.3%.

[DON SVO]

If you're putting 10+% down, yes. Can be as high as 3.3%.

I like 0.0

[talisman]

If the cars dont kick off within the next ten years, we will be done early. Her highlander is only at 70k and my dodge at 136k. Hope we can nurse them along, since hers pays off this year.

I've had the 5.0 for just over 4 months and it has 3800 miles. 1200 of that was the New Orleans trip. lol, hope this thing lasts a LONG time.

[SVT Lurch]

I like 0.0

That's because you're a smart feller.

[Chili]

If you're putting 10+% down, yes. Can be as high as 3.3%.

I bought in 2005, so I'm not sure. It may have been a more but I would have to pull out my closing docs to confirm.

[Roscoe]

Serve your country and a VA will afford you no MI, but you will pay a 2.x funding fee one time...

<-- used it twice, had to pay 3.3% but as of this year, it's covered.