Wifey and I are buying a house, and we're quite excited about it.
In the process, I contacted most of my friends and asked for recommendations for a mortgage broker. We've shopped around for a mortgage, and had a bunch of good recommendations.
We brought a pretty good package to the table. Dual income, no outstanding debt, and high credit scores. All thanks to the Mustachian lifestyle.
We came in with 10% down payment, and initially we were quoted 3.875%, 30yr fixed with a PMI payment of $101/mo, or 4.05% 30yr fixed with lender paid PMI.
Then, we came upon a better rate, and locked in a 3.625% 30yr fixed mortgage, with the same PMI.
The difference between 3.625% and 4.00% is roughly $87.00/mo at our loan value, and thus paying the PMI made sense, as the difference between the loans is $14 after paying the PMI. Especially considering the rate is locked for 30yrs.
One new thing that I learned, is that Mortgage Insurance rates vary based on credit worthiness, and is calculated based on several different factors. Our PMI of $101/mo is considerably less than all of my friends rates.
Having looked around, and done my research, I had convinced myself that 3.85-4.00 was the best rate I'd get at this point. I thought 3.875% was a good rate, and I think 3.625% is a damn good rate!
We had the option to go in at 20% down, and eliminate the PMI, but it makes no sense when the cost of the PMI is a 2.69% return on our money.
Pretty stoked!
