Thanks again to everyone who chimed in on this issue. Your comments were
all very helpful.
I wanted to add some more information to this thread in case it might affect
anyone in the future. I called Community Housing to ask whether it is
possible to keep the mortgage under the Penn program if someone goes from
full-time to part-time employment. Calling on two different occasions I
received two different answers, so I asked for an official reply from the
director. Finally I got a response which basically said that this issue is
decided on a case-by-case basis. If you go part-time, they want to see
proof that you can still afford the mortgage, and that you haven't had any
significant defaults on it in the past.
Just thought I would share as an FYI.
~Heather
From: Dan Widyono <[EMAIL PROTECTED]>
Reply-To: Dan Widyono <[EMAIL PROTECTED]>
To: [email protected]
Subject: Re: [UC] exiting the UPenn enhanced mortgage program
Date: Fri, 13 Jul 2007 21:21:29 -0400
On Fri, Jul 13, 2007 at 05:02:02PM -0400, Doc Baldy wrote:
> In terms of the PMI, I know that some lenders allow you to take out a
> home equity loan to cover the 20% and thus avoid the PMI. For
> example, assuming your house costs $100,000. You can get a mortgage
> for $100,000 and have to pay PMI or you can get a mortgage for $80,000
> plus a $20,000 home equity loan. In the later case, you do not need
> to pay PMI, or so I'm told.
You have to watch the terms carefully, though. The second loan is likely
to
be a balloon or ARM. You really should be comfortable with the math before
going this route, and/or be prepared to refi or pay off the second loan
within the allotted period (5/7/15 years are typical). The APR is likely
to
be beneficial relative to your PMI monthly payments, however, but you
should
check with each situation.
Dan W.
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