80/15/5 possible?

hesser · Joined: 28 Nov 2007 Posts: 4

I am looking for a 80/15/5 mortgage for a home in Texas. The purchase price is 435000. The borrowed amount is 413250. My wife and I have a monthly gross of 12300. We have a $450 car payment and a $700 401K loan. We have about 110000 in liquid assets and about 260000 in 401k. my Fico is 735 and hers is 765. What would be a good rate? And would we qualify as our DTI is 39% on the high end. We can fully document and we have been working for the same company for over 10 years.

liverichly · Joined: 10 Feb 2005 Posts: 199 Location: Orange County, CA

Surprised no one has answrered you yet... you should be able to get about 6% on the 1st and 7.875% on the 2nd. As long as the DTI is below 45% you should be fine, yours is about 40%.

akaagassi · Joined: 29 Sep 2006 Posts: 17 Location: Sacramento

You shouldn't necessarily have to split it up into 2 loans...

A lot of lenders have programs with 1 loan, 10% down, no PMI...there's another one out ther that will do the loan with 5% down good FICO, reasonable DTI in 1 loan with no PMI...

and no YSP or other junk...the rate is probably an 1/8 higher than what you'd obtain elsewhere...

hesser · Joined: 28 Nov 2007 Posts: 4

I was quoted 5.875 for 95/5 LPMI with 1 point origination and a 30 day lock. No other junk fees etc...
Does that sound possible?

Thanks

liverichly · Joined: 10 Feb 2005 Posts: 199 Location: Orange County, CA

It's possible but that is a really good deal, rates did go up a tad bit today so I'd make sure that is still available. Totally forgot about the LPMI option originally, I do think that would be the better route to go than the 80/15 combo.

hesser · Joined: 28 Nov 2007 Posts: 4

Thank you for your reply. I did a 15 year amortization for LPMI, MI, and 80/15/5 and the LPMI came out on top, both on principal reduction and monthly payment.

liverichly · Joined: 10 Feb 2005 Posts: 199 Location: Orange County, CA

For a 15-year fixed you could get a 1/4% lower in rate for the same origination.