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Nobody ‘wants’ to pay PMI; St. Louis Mortgage Interest Rate Update

Nobody ‘wants’ to pay PMI, it’s just that we have no choice, especially if you want to buy a house and don’t have say an extra $50k to $80k lying around for a down payment, which most first-time buyers don’t.”   Chris Durst, a first-time homebuyer and commenter on Investopedia.com.ask-the-expert
The credit experts at MGIC, the nation’s largest private mortgage insurer, wants Realtors® and Lenders alike to know that financing with MI creates opportunities for borrowers:

  • Increased buying power – Private MI makes it possible to a buy home with less than 20% down. (Lenders and investors typically require mortgage insurance for loans with down payments of less than 20 %.)
  • Homebuyers – especially first-time homebuyers – can reach savings goals faster and become homeowners sooner than otherwise possible.
  • Move-up buyers are able to consider a wider range of homes and leverage their investment in their current home.
  • Expanded cash-flow options – Borrowers can benefit by putting less money down and keeping cash for other uses: making investments, paying off debt, or paying for home improvements or emergencies.
  • Lower monthly payments – A credit score greater than 760 can be rewarded with lower borrower-paid monthly MI rates from MGIC. That translates to monthly MI costs and monthly mortgage payments that are less than they would receive with Federal Housing Administration financing. Private MI typically may be canceled sooner than FHA insurance and is available on a wider variety of loan products.
  • Secure, competitive, predictable monthly payments – A fixed-rate mortgage with MI provides borrowers with a locked-in monthly payment that will not increase and that will be reduced when MI coverage is canceled.
  • Mortgage insurance may be canceled – On most loans with MI, coverage must automatically be canceled by the lender when the loan reaches 78% of original value through amortization. MI also may be canceled when extra payments bring the loan below 80% of original value.
  • Reduced taxes – Borrower-paid MI premiums are tax-deductible through the year 2013. The deduction is not restricted to first-time homebuyers.

St. Louis MORTGAGE INTEREST RATES for February 13, 2013:

  • Conventional 30-Year Fixed 3.500%/ 3.777% APR
  • Conventional 15-Year Fixed 2.875%/2.972% APR
  • Conventional 7/1 ARM 2.875%/ 3.582% APR
  • FHA/VA 30 Year Fixed 3.25%/4.160% APR
  • Jumbo 5/1 ARM 2.625%/ 2.426% APR
  • Jumbo 15 yr Fixed 3.000%/ 3.094% APR
  • Jumbo 30 yr Fixed 4.625%/ 4.719% APR

*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720. Fees/rates may vary for different loan amounts and will affect the actual APR. Quoted rates are for 740 credit scores or greater with 80% LTV (Loan to value) or less. All pricing is dependent on applicant’s LTV, credit score, and state residence. Conforming rates are for a primary residence in the St. Louis MSA over $150,000 & under $417,000.

This information is provided to you for informational purposes only and is not an advertisement to extend customer credit as defined by Section 226.2 Regulation Z. Contact Paramount Mortgage to learn more about its mortgage products and your eligibility for such products. Program rates, terms and conditions are subject to change at any time.

Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website: www.paramountmortgage.com

For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

 

 

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