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What is a customary rate to pay for Pmi.

We have credit ratings in the 800"s and are looking to buy with putting 5% down.  We did have a house under contract in dec 2012 ( that fell through) but was given a gfe of 1.17% of the loan amount for the Pmi.  Now we are at it again and the bank not only said it has already locked( which we did not approve) it says due to Fannie Maes new regulations we need to pay 1.88% of the loan amount . They locked us in at 4.25%, What recourse do I have on both accounts.  I sometimes feel that because we have saved and watched our credit we are charged more.
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July 16 2013 - Menlo Park
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If you have excellent credit, strong income, low debt, and even 5% down, you should be able to do a conventional Fannie/Freddie loan.

For example- if buying a $200,000 home and you put down 10,000 - conventional monthly mortgage insurance would start at a factor of .59% or $93.42/month. Conventional loans have no upfront mortgage insurance so that is the way I would steer you if you were my client. 

Hope that helps!
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July 16 2013

Interesting.... most complaints over the past 30 days are over lender's not locking in rate.  Bank gave you erroneous information and good news is that you are not obligated to proceed with lock.  PMI as Eric mentioned would be .59 or less monthly or you could opt for a single premium PMI paid upfront.. I would suggest that you explore another lender as your bank's credibility leaves a lot to be desired.

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July 16 2013
You might have gotten extremely lucky if they did lock your loan!  Rates are at a near 2yr high at the momentand if they locked your loan prior to the huge rate hike you should absolutely close with them!!  You can also look at possibly doing a Lender Paid Mortgage Insurance or LPMI.  
Best of luck! 
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July 16 2013
 
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What is a customary rate to pay for Pmi.
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