All Forum Posts by: Jessica N Sites

@Andrew Postell @Jeff T. #2 was the correct choice! I used Bankrate and got linked up with Better. They are offering a MUCH better package. 3.625% rate with APR of 3.81% Total closing of $4539 but payments dropping from $769 to $603.

ALWAYS ALWAYS shop around!!! Thanks for the responses 

Ok! Thanks @Andrew Postell for giving me your ideas. I did reach out to the lender "Home Point" and tried the 1st option you recommended. They responded with a letter. I copied the relevant parts for anyone who may have the same questions!!! But being an investment loan they require more equity than 20%. Did you have an opinion on the cashflow aspects of getting rid of the PMI now vs. later?

Freddie Mac is the investor on the account, and it offers two methods to determine whether PMI
may be cancelled. One method (“Original Value”) compares the outstanding balance of the account
against the original value of the property. The other method (“Current Value”) compares the
outstanding balance of the account against the current value of the property. Under either method,
the account must be current and there must be a good payment history (i.e., no payment was
30 days or more past due within the past 12-month period or 60 days or more past due within the
past 24-month period).

Original Value
Because the account is secured by an investment property or two to four-unit principal residence,
it may be eligible for PMI cancellation if (1) the current value of the property is at least equal to its
original value, (2) the LTV has reached 65% of the property’s original value, and (3) the current
value of the property is verified by a broker price opinion (“BPO”) that is ordered, and directly
received, by Home Point. At this time, you have an LTV of 83.53% based on the original value of
$130,500. You will reach 65% LTV once your principal balance is equal to or less than $84,825.

Current Value
Because the account is secured by an investment property or two to four-unit principal residence,
it may be eligible for PMI cancellation if (1) at least two years have elapsed since it originated, (2)
the LTV has reached 65% of the property’s current value, and (3) the current value of the property
is verified by a BPO that is ordered, and directly received, by Home Point. Based on your current
principal balance of $109,001.01 the property must appraise at approximately $167,694 to reach
the required 65% LTV

Regardless of when the account originated (even if it was less than two years ago), it may be
eligible for PMI cancellation if (1) substantial improvements have been made to the property that
have increased its value, (2) the LTV has reached 65% of the property’s current value, and the LTV
is confirmed by an appraisal that is ordered, and directly received, by Home Point and that is
completed after the relevant improvements have been made.

@Andrew Postell 

Hi, Andrew the $707 number is the total payment with escrow and everything (insurance,taxes, etc.). You are correct the P &I would be $605. Currently it's $612 so not a huge difference. Thanks for letting me clarify.

Hello!

I've been a member on the forum for sometime, often just reading through answers and ideas. I currently (since 19') have an investment townhome in WV panhandle. I see rates are still pretty low and wanted to take advantage of them before they went back up. I plan to hold this long term (years). It was built in 1993 and recently upgraded cosmetically and a newer roof added. Below is the current offer I'm looking at and where I'm sitting at currently. I'd like to get rid of the PMI (wasted money) and increase the cashflow potential.

Current - Zillow estimate ($162K)

Loan amount was $110,925 @ 5.25% over 30 years. Payment w/PMI/escrow total is $760.55. PMI alone is $48. $108,454 left on the loan.

Considering

new Loan of $114,500 @ 4.875% over 30 years. Pts ($2,792). Payment total (escrow/NO PMI) is $ 707. Closing costs rolled into loan $6032.

Now obviously this would increase my cashflow immediately but would add a considerable amount to the loan itself. I calculated it would take 8.6 years to recoup the closing costs. The current lender wants 65% LTV with a appraisal before dismissing the PMI.

So ANY opinions, ideas, thoughts from someone whose been at this longer than myself? What would you do? Thanks in advance! 

Thank you!

I am in the process of purchasing my first duplex and am looking for a solid leasing template for tenants in Virginia. Does anyone have a template they do not mind sharing? 

Awesome, thank you! 

Do you know of anyone in the Northern Virginia area that was successful in getting a duplex with 3.5% down? 

Hello, my name is Jessica and I'm just now starting out in the resl-estate/investment property game. I am currently trying to buy a multifamily home (duplex to be exact) with an FHA loan; is it possible to buy a duplex with 3.5% down?