Today I had three loan closing – well six really. I did each loan with a first and second – to avoid Private Mortgage Insurance, (PMI). Not as many lenders offering seconds in TX like they use to.
Adjustments to our mortgage industry via the Dodd/Frank law – changed the way loan originators (LO) were paid – basing our income on closed loan volume. They felt that change would help the consumer over the long run and always get the lowest interest rates. And if you add a second loan, you lower the amount a LO can get paid so I see more lenders selling loans with PMI.
Let me know if I could work up some loan numbers for you on a purchase where you don’t have the full 20% down payment. Would love the opportunity to work for you!