Posted by Jim on June 19, 2003 at 21:11:14:
AJ,
The PMI is equal to about 0.5% so unless you can get a first at 5.35 with no PMI, ,which will be hard to do on 90%, that is still a great deal, especially on an investment property. My company would not require PMI but the rate on an investment prop would not be lower than 6. I say take it.
Financing a 4 Family 10% down, ways around PMI? - Posted by AJ
Posted by AJ on June 19, 2003 at 16:51:16:
I have been offered a 90% LTV 30 yr fixed @4.875% (locked in actually), but I have to pay PMI.
My other alternative is 75 1st 5/1 Yr arm 4.75, 10% equity line and15% down.
while my all in pmnt would be lower, I have a hard time passing up the low 30 yr rate.
I have had all sorts of problems getting a second w/a 30yr rate, Iguess FNMA wants no seconds on a 4 family so that ruled our many investors and I ended up with a bank whose deal blows away anything else I have been quoted.
Would it be possible for me to secure a home equity line/2nd loan after closing and use that to pay down the first to 80% LTV and get PMI removed? any ideas would be appreciated.
Thanks
AJ