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Low down payment and mortgage insurance!!!


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Hi.
Need help with a mortgage situation! I got to hear from a friend about this forum!
I'm looking to buy my first home, but it seems like a long road ahead with the increase in real estate prices. My credit score falls in the range of 650-700, along with excellent payment history. I live in a two-bedroom rented apartment with my family. With the apartment's monthly rental price and other expenses, I can offer only a down payment of about 10%. I had discussed with a mortgage lender who has assured that I could get a mortgage, provided I have mortgage insurance. Mortgage insurance doesn't seem so bad, but I am in uncharted waters here. With the real estate prices still estimated to increase, I guess it is better to buy one early. Will the interest be higher if I take mortgage insurance? I did check an online source* for the interests that I would have to pay.
However, I would welcome help from those who have a similar situation. Could you guys share your personal experiences with mortgage insurances so that I can learn from it?
Any help is appreciated! Thanks!

 

 

*Moderator note:  removed external link

Edited by CTSoxFan
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  • 2 weeks later...

Buying your first house is a leap of faith. For most, 30 years of payments seem to be forever, the amount is usually a large percentage of income, home improvements such as window coverings, additional furniture, etc. can be expensive, etc. Saving cash for the inevitable repairs and upkeep seems like a impossible task. 

I did not sleep well the first several weeks after closing on my first mortgage and it took months before I was comfortable with the idea of all my cash going to a house. I sold and bought two other houses after that and some of the feelings returned each time.

Fast forward to now, my house is now paid off ahead of time and it is a grand feeling. Yeah, I missed out on some travel that I wanted to do and a car that I really wanted, but paying ahead and killing the mortgage was worth it. 

As long as you can reasonably afford it and do your diligence in researching the area, go for it.

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On 9/15/2020 at 10:29 PM, SOMcD said:

Hi.
Need help with a mortgage situation! I got to hear from a friend about this forum!
I'm looking to buy my first home, but it seems like a long road ahead with the increase in real estate prices. My credit score falls in the range of 650-700, along with excellent payment history. I live in a two-bedroom rented apartment with my family. With the apartment's monthly rental price and other expenses, I can offer only a down payment of about 10%. I had discussed with a mortgage lender who has assured that I could get a mortgage, provided I have mortgage insurance. Mortgage insurance doesn't seem so bad, but I am in uncharted waters here. With the real estate prices still estimated to increase, I guess it is better to buy one early. Will the interest be higher if I take mortgage insurance? I did check an online source* for the interests that I would have to pay.
However, I would welcome help from those who have a similar situation. Could you guys share your personal experiences with mortgage insurances so that I can learn from it?
Any help is appreciated! Thanks!

 

 

*Moderator note:  removed external link

Mortgage insurance is that bad.  it is money you spend every month and get exactly 0 in return.  You are better off lighting your cash on fire, at least you'll get a bit or warmth and a nice glow.  You will have pay it until you have achieved 20% equity in your house (roughly 6 years with no extra payments).

 

Given that, plus the fact that you'll not qualify for the best rates given your FICO scores, and that the Fed has indicated they plan to keep rates low for the next couple of years (of course no guarantee there), you would be better off holding off for a bit and see if you can get to the 20% mark and improve your FICO scores to 760+.

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