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Hi Sync,

Haven't talked with you for a while, hope all is well, and you're enjoying Texas. I think that's where you moved. Was back in Chicago recently for a cousin's funeral, still love that town and great to see how the city has grown, but the weather hasn't improved.

an FRM with PMI (we're putting down under 20%) or a 1st for 80% and then a second for the rest.

Will trust your spreadsheet, what did you determine the break point for doing one loan with PMI or splitting it into two loans and not having PMI? I would find that answer helpful. While I'm comfortable with numbers, I would go with my gut instinct on this one and go with the two loans. I think there are other variables in play besides the economic / cost analysis of how it impacts the monthly payment.

One suggestion, the PMI rates you quoted elsewhere in the thread are as negotiable as the interest rate and do differ among various lenders. I'm a little surprised a broker would give hard and fast percentages on PMI, it's really a function of which PMI company issues the insurance. As a broker chooses which end lender to place the loan, each lender may have a different PMI factor. At the bank where I originate loans, I see various PMI costs. However I do not get to choose which PMI company is used, my bank makes that selection after the loan funds. The bank prefers to minimize risk by spreading PMI insurance over many different providers. When someone asks me specific PMI factors, I quote the highest cost provider. After the loan funds, I've received phone calls as to why the PMI is less than I quoted.
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