Not exact matches
If you put down less than 20 percent
on a
conventional loan, also known as a conforming mortgage, your lender will probably ask that you get Private Mortgage Insurance (PMI)
until you have made two years» worth of payments or your principal balance is reduced to 78 percent of its original amount.
@Omar Khan I think i will go with a
conventional loan in my 2nd property and give the 20 % down and wait
until i have 20 % equity
on my 1st 4plex property.
However, if you put down less than 20 percent of the full purchase price
on either
loan, you are required to also buy mortgage insurance, called PMI
on conventional loans and MIP
on FHA
loans, which generally adds between.5 and 1 percent of the
loan amount onto your house payment annually
until your
loan is 80 percent or less of the value of your house.
PMI will cost you between 0.3 to 1.5 percent of the overall mortgage amount each year.8 So,
on a $ 100,000
loan, you can expect to pay between $ 300 and $ 1500 per year for PMI
until your mortgage balance falls below 80 percent of the appraised value.9 For a
conventional mortgage with PMI, most lenders will accept a minimum down payment of five percent of the purchase price.7