Hello all, E-loan is offering a 100% mortgage at 7.25% (discounted 1.82% points), no PMI required. The closing costs are resonable (about 3% including the points). I know that the interest is more than a point higher than normal but there is no PMI. What do you think about this and e-loan mortgages in general? Thank you! Mark
Just some information for everybody E-loan unlike Countrywide is pulling all reports for mortgage applications. Thanks! Mark
If your scores are good, I would suggest you try www.lendingtree.com. One of offers was for 100% 30F @ 5.875 with 2 points, but my scores are all above 750. Worth a try, I had 4 preapprovals.
Thank you for the response. I did try lending tree and they said: "Current market conditions have motivated many consumers to request mortgage loans through LendingTree. As a result, this volume has surpassed the current capacity of our lender Network making it difficult to fulfill consumer demand at this time." They pulled equifax and I have more than 750 there too. By the way it looks like to me that a loan at 7.25 has about the same payment with 6.25 and PMI. This is why I wanted to verify with somebody here. Thank you! Mark
Wells fargo, b of a and a few others can do combo loans 80/20 with no pmi and the rates are below 6.25 on the 80.
Thank you for the references. I have already checked them out and Wells Fargo's interest for 0 down is 7.5 and requires PMI. B of A requires that my incomes should not exceed 80% of the median income in the area which is not the case. Any other options? I am looking for a 3/1 or 5/1 ARM with 0 down and good rate. Thanks again! Mark
Mark: Are you only checking online or calling the reps? Not all the deals are online you know. They can provide custom financing for good scores (720+). I know Wells Fargo has a program with lender paid PMI, they just roll it into a higher interest rate. It ends up being around the same monthly payment, but as Interest, it would be tax deductible, but as PMI it would not be (I think). I'd wait for a response from lending tree before jumping into anything. I had all my preapproved offers with 2 days... hell 1/2 of them came on a Saturday... imagine bankers working weekends! good luck.
Does it have to be 100% financing? I signed today on an 80/15/5 loan with 80% being 5/1 ARM at 4.875% w/ 0 points which I locked in early last week and 15% being 5/30 (amortized over 30yrs, due in 5) at 6.87%. I'll refinance the 2nd within half a year anyway. My scores were 688-715 and my wifes about 20-30pts higher. I went through a local broker who resold Principal Residental mortgage to us. Paying PMI sucks because your lender will have to agree to waive it when you bring an appraisal and you wouldn't want to refi a 30yr at these low rates just to get rid of PMI. Paying a higher rate instead of PMI sucks too because you'll pay this higher rate forever.
Yes, due to special circumstances, which force me to move right now, it has to be 100%. Initially I got pre-approved from Countrywide with 5% down and very good interest. Now I have to find a 100% product. I will try the local brokers too. I have already applied through Quicken and waiting. They seem to have better rates than e-loan. Thank you everybody for all the sugestions! By the way I only plan to keep this house for less than 3 years, probably 1-2. I would rent but i cannot find anything to fit my needs. Mark
Mark, With your scores I'd go to a local broker and tell him to find you 80/20 financing with the 80 as 3/1 or 5/1 ARM and 20 as HEL, HELOC or 5/30. You'll probably pay a premium for 100% financing but it should be less than 7% or paying PMI. I really don't have any experience with Internet mortgage and in such a situation I'd find it easier to have somebody to talk to directly. Mike
Where are you looking to buy a house? Because PMI (which is a waste of money) doesn't last forever, once your house has 20% equity LTV then it can be removed. Something to consider if the best rate you are getting involves PMI. We live in northern cali and our house has appreciated 28% in a year! It's possible these days!
