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What % down do I need to put on a loan in order to not have to pay PMI?

Asking for 150,000 loan, I have 780 credit score, income is 62,000 base salary (without commission)
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July 14 2010 - US
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Answers (9)

Depends what kind of loan you qualify for... Traditional Conventional/Agency loans require you to put 20% down to avoid any kind of Mortgage Insurance, however if the property qualifies for a USDA loan or if you are US Veteran, you wont have a Monthly Mortgage Insurance, just a one time GUARANTEE fee and some times some lenders provide 90% with Lender Paid Mortgage Insurance. if you are in California, please feel free to contact us for more information.
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July 14 2010

If the OP is considering a 15 Year loan with their 780 score and 10% down, an FHA loan would be a poor choice. Using a $225K loan amount, the upfront mortgage insurance on FHA would be $5062.50. Compare that to paying $50/month for only 31 payments ( 78% and MI removal ) which is $1550, saving $3512.00. Just because there is no monthly MI on the FHA 15 Yr loan with 10% down is no reason to point it out and forget to mention the high upfront 2.25% fee being added to the loan.

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July 14 2010
Lizzy, You aren't a veteran by any chance? VA loans no monthly M.I. No money down, FHA no monthly M.I. if 15 year term with 10% down, otherwise on conventional you'll need 20% down.
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July 14 2010

Now I am dizzy... She asked about AVOIDING PMI. If someone put down 20% on an FHA loan they would pay 2.25% upfront plus monthly MI for 5 years if it is more than a 15 year term, not exactly avoiding MI. In fact if someone put down 20% with a 780 score, they should get another loan officer if they were told to go FHA.

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July 14 2010
To confirm what others have stated: 20% on conforming - 20% on FHA and only after loan has aged for 5 years can it be removed. 15 year FHA has no monthly MIP.  Thanks!
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July 14 2010
I am sure lizzy is now dizzy, only asked how much to put down to avoid private mortgage insurance. BTW, the upfront MIP at 2.25% for an FHA 15 Yr is higher than LPMI at 90%, given her score of 780 plus, f she was interested in a 15 Yr. Lizzy, if you can put down 10% or more, go conventional.
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July 14 2010
On an FHA 15 yr. loan there is no Mortgage Ins. Premium if you put down 10% or more.  There is still a 2.25% Upfront Mortgage Ins. fee which adds $25 approx. to your monthly payment, which is less than half of conventional PMI premium. You also get an assumable loan (with qualifying) which in the future when you sell might be worth a premium if rates are higher than 4%!
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July 14 2010
Well that depends on the mortgage company/bank. Some require that you pay PMI for at least 5 years. You need to have a minimum of 20% equity in the home to avoid PMI.
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July 14 2010
20%
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July 14 2010
 
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