Can't pay 20% down payment, can I change loan to 90% instead of 80%?

Question

Can't pay 20% down payment, can I change loan to 90% instead of 80%, THe value is 180k, i paid 18k already, now I was gonna pay 18k more to make it 36k or 20%, but now i can't and I already made a loan for 80% or 148k, now i want to change it to 167k, is that possible, the closing is soon. If so how long will it take. Thanks.

Answer 1

Ask the to come down by 10% So you still at 80% / 20% or atlest 5%
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Answer 2

Your loan would have to go back to underwriting for approval at 90% LTV, or (10% down). This loan would require monthly mortgage insurance. With the price of loan you are doing, that monthly mortgage insurance would be high. My suggestion would be to ask your broker or banker if a combo loan would be better so that you could eliminate the monthly mortgage insurance. This would be done by doing a 80/10/10. 80% 1st mortgage, 10% second mtg. and 10% down from you. Compare the two and see what would be best for you. I hope this helps. I am a mtg. broker for 14 years in Michigan and Florida. If you have a good broker he should be able to tell you which would be the best for you. Always look at what your long term goal is for this home. The length of time you will be living there is important. The difference between paying monthly MI or making a payment on a 2nd mtg. is where you need to ask yourself which would be best. The monthly mtg insurance will only be temporary once you either gain 20% equity in the home and ask for the monthly mi to be removed. this 20% equity can be gained by either the improvements you do to the home and the market values in the area. Hope this has helped you. Good luck.

Answer 3

It should not take long, all your mortgage broker has to do is request the loan amount to be increased. This is something that is done daily in this business.

Now with the increase comes this ugly thing called Primary Mortgage Insurance (PMI) that will be added to your monthly payment. That is the bad news, the good news is now that nasty ole PMI is tax deductible on your federal income tax. so you will be getting some type of document from the lender stating how much PMI you have paid as well as the amount of interest you have paid for the year. Check with your tax consultant for any tax information.

I don't think your interest rate will be affected that much, as long as you have a good credit score as apparently you have pretty good reserves in the bank. It should take approximately one day to get this change approved.

Once you have your new approval your mortgage broker will then request the loan docs from the lender. Also you should get another Good Faith Estimate(GFE) issued by the mortgage broker. This document would reflect if the rate has changed in any way what so ever. If you do not get a new GFE, you should request one from the escrow closing agent as well as mortgage broker who might have the closing agent make it any way.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

your loan will have to be submitted to underwriting again and your rate may go up due to a higher loan to value. You may also need to pay Private Mortgage Insurance since you are going above 80%.

Ask your bank or broker what they think.

Answer 5

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Answer 6

If you are creditworthy and can get credit insurance and pay a higher interest rate, it might be possible. Check with your lender.