Author Topic: Alliant Advantage Mortgage - No PMI  (Read 2531 times)

YummyRaisins

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Alliant Advantage Mortgage - No PMI
« on: August 17, 2017, 06:11:51 PM »
Received an email today from Alliant Credit Union about their No PMI and 0% down Alliant Advantage Mortgage for first time home buyers.

My question: Is this too good to be true? 0% down and no PMI seems like it would be. Not sure what the rates are on these. You all are much more knowledgeable about these things, so I'm hoping you are able to set me straight!

A few details:
Loan up to $500,000.
As low as 0% down.
No PMI.
$1,795 origination fee.

Example Fixed Rate Mortgages Monthly Repayment Terms

Loan Type                      Rate(%)   APR(%)   Payment Per $1,000
15-Yr. Fixed (180 months)   3.250       3.397       7.03
30-Yr. Fixed (360 months)   4.000       4.084       4.77

Payment examples do not include taxes and insurance premiums; actual payment obligation may be greater. Purchase rates may differ from refinance rates.

MrSal

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Re: Alliant Advantage Mortgage - No PMI
« Reply #1 on: August 18, 2017, 09:19:43 AM »
wow this would be awesome! they evem have 5% down no PMI for people that dont fit the First time buyers.... if this is true i would definitely consider using them

srad

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Re: Alliant Advantage Mortgage - No PMI
« Reply #2 on: August 18, 2017, 09:24:47 AM »
I think the key words here are "As Low As 0%".   If they are offering a true 0 down on a purchase, you are probably going to be getting what is called an 80/20 loan.  80% will be at the 4% and 20% will be at a slightly higher rate.  I loved those using those in the old days (pre 2009). 

Its at least worth a call to them to find out what the catch is.  And if it really is 4% with 0 down, this credit union is very bullish on the housing market. 

YummyRaisins

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Re: Alliant Advantage Mortgage - No PMI
« Reply #3 on: August 18, 2017, 04:57:07 PM »
I'm going to contact them to get a few more details. I'll post them here after I hear back.

rab-bit

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Re: Alliant Advantage Mortgage - No PMI
« Reply #4 on: August 19, 2017, 08:50:17 AM »
PTF

YummyRaisins

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Re: Alliant Advantage Mortgage - No PMI
« Reply #5 on: August 21, 2017, 02:17:16 PM »
Spoke with a representative today.

The 0% down and no PMI only applies to the 5/1, 7/1, and 10/1 ARM mortgages.

My basic understanding of ARM is that the interest rate is fixed for a period of 5, 7, or 10 years, then the rate can be changed once per year depending on an index rate.

Not sure how much sense this makes for a first time buyer to use vs. a 15 or 30 year fixed-rate mortgage, especally considering current low rates.