Monday, February 11, 2008

Portland Added to Restricted List for Mortgage Insurance

skeptictank pointed this out over on the Portland Housing blog...

Portland Added to Restricted List

The actual list is here

A description of their new policy is here

It looks like Portland has become a big enough risk to add us to the restricted list, which will make it harder for some people to get a mortgage, further depressing the local market.


bearlee said...

Does any one out there know how much PMI costs? Does it vary w/ credit score? Isn't it charged per $100K borrowed? We did VA loan the first time around so didn't have to factor it into affordability and will probably need it next time around if we don't have 20% down. Speaking of, is 20% down still the measure for PMI?

Ian said...

i do believe it is charged based on your mortgage amount, and i bet it does vary a bit based on credit score. i had PMI on my first house, which i bought with about 10% down, but I tossed that paperwork years ago.

what i'm curious about is whether anybody requires PMI if you have an 80% primary loan, and a 20% secondary loan. does anybody know?

bearlee said...

No PMI required with an 80/20 but that was called creative financing and from what I understand banks are no longer allowing that but I guess one can still try!

Now that I think about it all those ARM's, negative amortization, and interest only probably required PMI?! But dang, that would be expensive on a 500K+ loan...anyone w/ personal experience that can chime in? A lender, maybe?!

Anonymous said...

Lender here!

To avoid monthly PMI expense, try "Lender Paid Mortgage Insurance". Most lenders offer it and it is a very nice way to avoid monthly PMI and lower your payment. Good luck!