Originally Posted by ChrisDeSoup
Poop is not the word I use when thinking about it! Wife and I are first time buyers so we get some downpayment assistance and special low fixed rate for the first (also intrest only for the first 5 years) and deferred payment and intrest for five years on the second. It workes out good for me 'cause my kid will be in full time school in 3 years so I will be free to return to work full time when the "promo" period ends.
Any of you first time buyers paying PMI insurance?
We didn't have 20% down on our house and had to pay PMI insurance. It was like $85 a month - sucks, but necessary if you don't have that kinda cash to put down. We refinanced after 8 years I believe and were able to get rid of the PMI because the mortgage-to-value (or whatever they call it) had reached past 20%.
I see now - there are new laws in place (not sure what they are).
Before - even if your mortgage/loan went beyond the 20% - the bank wouldn't drop the PMI insurance. They'd keep collecting it until YOU (the home-owner) would request them to drop it. Stupid....banks kept pocketing that money that you didn't have to pay.
So as a home-owner, you really had no idea when your home value reached that 20% point unless you paid off 20% of the principle or you had your home appraised to be worth more.