These are the checklists related to Interest Rate.
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- Discuss monthly PMI versus up-front PMI with Lender
Often for Nomads it is better to pay a one-time up front PMI (Private Mortgage Insurance) payment instead of monthly PMI on their loans.
This may mean coming to Closing with a little more cash.
Sometimes it means voluntarily raising your interest rate with your Lender to get a credit to pay for some or all of the up-front PMI.
Discuss these two scenarios with your Lender to see which one makes more sense to you.
Mark this task complete once you've discussed this with your Lender and decided which you'll pick.
- Consider buying down interest rate
Talk to your Lender to see if buying down your interest rate makes sense in your specific situation.
Sometimes, especially if you have extra cash and you plan to hold the property for a long time, it makes sense to pay additional points to get a lower interest rate.
Mark this task complete once you've talked to your Lender about these options, analyzed them yourself and decided to buy down your interest rate or not.
- Consider increasing down payment
Sometimes if you have extra cash for down payment it might make sense to increase down payment.
We often consider this as an alternative to to paying up-front PMI or buying down the interest rate. If we're putting less than 20% down, one way to lower our monthly payment is to put more down to get rid of PMI instead of paying the PMI up-front.
Mark this task as complete when you've talked to your Lender about using a larger down payment and decided whether you will or not.
- Class Watch "Interest Rate Scenarios for Nomads" Recording of Live Class