Comments on: PMI, the nasty little blood sucking leech thats hard to get rid of http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/ Personal Finance, career, investing, retirement, saving and debt blog Fri, 21 Nov 2008 12:30:57 +0000 http://wordpress.org/?v=2.3.3 By: bhath http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1296 bhath Fri, 11 Jul 2008 21:10:49 +0000 http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1296 My lender also offers a slightly higher interest rate (about +0.10%) as an alternative to PMI. If you do that calculations it ends up costing less over the life of the loan versus PMI & even a piggy back loans. www.thirdfederal.com My lender also offers a slightly higher interest rate (about +0.10%) as an alternative to PMI. If you do that calculations it ends up costing less over the life of the loan versus PMI & even a piggy back loans.

http://www.thirdfederal.com

]]> By: Jesse http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1212 Jesse Wed, 18 Jun 2008 20:12:34 +0000 http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1212 Great points James, if you have an FHA loan, this doesnt apply to you. Great points James, if you have an FHA loan, this doesnt apply to you.

]]> By: James http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1211 James Wed, 18 Jun 2008 19:51:40 +0000 http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1211 PMI is now tax deductible for some so while I do agree it is not all that great on a monthly payment basis what you pay in the end is a little bit lower. There is also a difference between the PMI people pay when they have conventional loans and FHA loans. The FHA loans have always had an upfront cost of 1.5% of loan amount (which could be financed into the loan) and .5% of your payment flat rate monthly which is scheduled to change in July due to a risk based pricing change in FHA. The new rates will depend on credit and asset risk. Conventional loans had ranges from .15%-4.0% of your monthly payment depending on loan type and occupancy. PMI is now tax deductible for some so while I do agree it is not all that great on a monthly payment basis what you pay in the end is a little bit lower. There is also a difference between the PMI people pay when they have conventional loans and FHA loans. The FHA loans have always had an upfront cost of 1.5% of loan amount (which could be financed into the loan) and .5% of your payment flat rate monthly which is scheduled to change in July due to a risk based pricing change in FHA. The new rates will depend on credit and asset risk. Conventional loans had ranges from .15%-4.0% of your monthly payment depending on loan type and occupancy.

]]> By: Jesse http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1209 Jesse Wed, 18 Jun 2008 16:40:36 +0000 http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1209 I absolutely recommend it if you don't mind dealing with some BS. On one hand it has been quite a pain over the years but on the other hand it has allowed me to build a good amount of equity all the while paying only a few hundred (with a few gaps of paying a lot more) out of pocket. Add in tax breaks and its great. I am convinced that despite everything going on right now with the real estate market the easiest way for the average person to go from lower middle class such as myself to being rich is a 3 pronged approach: 1) Stay/get out of debt 2) Save and invest 3) Buy and hold real estate I absolutely recommend it if you don’t mind dealing with some BS. On one hand it has been quite a pain over the years but on the other hand it has allowed me to build a good amount of equity all the while paying only a few hundred (with a few gaps of paying a lot more) out of pocket. Add in tax breaks and its great. I am convinced that despite everything going on right now with the real estate market the easiest way for the average person to go from lower middle class such as myself to being rich is a 3 pronged approach:

1) Stay/get out of debt
2) Save and invest
3) Buy and hold real estate

]]> By: David Carter http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1208 David Carter Wed, 18 Jun 2008 16:28:11 +0000 http://thepennysaved.com/2008/06/17/pmi-the-nasty-little-blood-sucking-leech-thats-hard-to-get-rid-of/#comment-1208 Sweet, you have tenants/roommates who pay for your mortgage bill. Thats exactly what I planned on doing when i graduate: Buy a house and rent out the extra rooms to friends. I'll be waiting for the post you said you will be writing in the next few days. Sweet, you have tenants/roommates who pay for your mortgage bill. Thats exactly what I planned on doing when i graduate: Buy a house and rent out the extra rooms to friends. I’ll be waiting for the post you said you will be writing in the next few days.

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