Quote:
Originally Posted by Pinky678
Yeah, my husband involved with Military. How about pay the bills if we get a house? I hope the property tax go down either. What is PMI mean? I am learning.
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PMI = Private Mortgage Insurance
Have to add PMI fee on your loan only if you only put down less than 20% of the house value (purchase agreement).
Example:
House purchase agreement price is $200,000
20% down payment is $40,000 (your own saving bank)
Then loan will be 160,000.
160,000 vs 200,000 is 80% Loan to Value (LTV).
If you put down less than 40,000 on the $200,000... means you will need to pay PMI. The closer to 80% LTV, the lower PMI is.
Right now market is allowing MAX 95% LTV (requiring 5% down payment).
I have found few programs that are allowing 100% LTV (0% Down payment). But requirements are very strict.