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  • January 12, 2011 at 11:14 AM #653313
    Scarlett
    Participant

    For 3 years with option 2 you paid for PMI 36 x 169 = $6084 and with option 3 you paid extra 36 x $31 = $1116. So after 3 years you are ahead with option 3 by almost $5000.

    For the NEXT 3 years with option 2 you pay monthly no PMI and $2159/month, while with option 3 you pay MORE by $31 x 36 = $1116 (over 3 years). Over the remaining 27 years that’s ~30K that you pay more with option 3. So 30-5 = 25K more over the life of the loan with option 3. It’s not a whole lot. If you don’t plan to stay that long, but only 6-7 years, then I also would go with option 3, since it’s a pain to remove PMI.
    (Presuming all fees/costs are the same; insurance and taxes are the same in both cases so I ignored those)

    January 12, 2011 at 11:20 AM #652205
    Diego Mamani
    Participant

    Welcome to Piggington!
    I’d go with option #3, then refinance when I have 20% equity.

    To get to 20% equity sooner, may extra payments every month, and also hope for further market declines in home prices.

    January 12, 2011 at 11:20 AM #652270
    Diego Mamani
    Participant

    Welcome to Piggington!
    I’d go with option #3, then refinance when I have 20% equity.

    To get to 20% equity sooner, may extra payments every month, and also hope for further market declines in home prices.

    January 12, 2011 at 11:20 AM #652859
    Diego Mamani
    Participant

    Welcome to Piggington!
    I’d go with option #3, then refinance when I have 20% equity.

    To get to 20% equity sooner, may extra payments every month, and also hope for further market declines in home prices.

    January 12, 2011 at 11:20 AM #652996
    Diego Mamani
    Participant

    Welcome to Piggington!
    I’d go with option #3, then refinance when I have 20% equity.

    To get to 20% equity sooner, may extra payments every month, and also hope for further market declines in home prices.

    January 12, 2011 at 11:20 AM #653323
    Diego Mamani
    Participant

    Welcome to Piggington!
    I’d go with option #3, then refinance when I have 20% equity.

    To get to 20% equity sooner, may extra payments every month, and also hope for further market declines in home prices.

    January 12, 2011 at 11:45 AM #652235
    (former)FormerSanDiegan
    Participant

    Go with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.

    Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.

    January 12, 2011 at 11:45 AM #652300
    (former)FormerSanDiegan
    Participant

    Go with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.

    Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.

    January 12, 2011 at 11:45 AM #652889
    (former)FormerSanDiegan
    Participant

    Go with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.

    Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.

    January 12, 2011 at 11:45 AM #653026
    (former)FormerSanDiegan
    Participant

    Go with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.

    Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.

    January 12, 2011 at 11:45 AM #653353
    (former)FormerSanDiegan
    Participant

    Go with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.

    Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.

    January 12, 2011 at 11:48 AM #652245
    Diego Mamani
    Participant

    Oops, I meant to say, hope for NO MORE price declines !

    [quote=Diego Mamani]Welcome to Piggington!
    I’d go with option #3, then refinance when I have 20% equity.

    To get to 20% equity sooner, make extra payments every month, and also hope for no further market declines in home prices.[/quote]

    January 12, 2011 at 11:48 AM #652310
    Diego Mamani
    Participant

    Oops, I meant to say, hope for NO MORE price declines !

    [quote=Diego Mamani]Welcome to Piggington!
    I’d go with option #3, then refinance when I have 20% equity.

    To get to 20% equity sooner, make extra payments every month, and also hope for no further market declines in home prices.[/quote]

    January 12, 2011 at 11:48 AM #652899
    Diego Mamani
    Participant

    Oops, I meant to say, hope for NO MORE price declines !

    [quote=Diego Mamani]Welcome to Piggington!
    I’d go with option #3, then refinance when I have 20% equity.

    To get to 20% equity sooner, make extra payments every month, and also hope for no further market declines in home prices.[/quote]

    January 12, 2011 at 11:48 AM #653036
    Diego Mamani
    Participant

    Oops, I meant to say, hope for NO MORE price declines !

    [quote=Diego Mamani]Welcome to Piggington!
    I’d go with option #3, then refinance when I have 20% equity.

    To get to 20% equity sooner, make extra payments every month, and also hope for no further market declines in home prices.[/quote]

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