Single Premium Mortgage Insurance allows you to buy a home with just 5% down and get rid of paying dreaded Mortgage Insurance forever.
Let’s look at an example of a recent purchase that Dawn and I helped some clients with and then we will dissect it. The purchase price of the home was $300,000. The clients were required to have a 5% down payment making their loan amount $285,000. The principal and interest payment on the loan was $1508. The taxes and insurance totaled $308 per month for a total PITI (principle, interest, taxes, insurance) of $1816. Because they were using a down payment of less than 20% they are required to pay mortgage insurance. The only question was how were they going to pay it. They had the option of paying it monthly at $137.75 per month or buying it out for $4018. Monthly Mortgage Insurance automatically drops off after about 10 years, when you are putting down 5%, so you can see that paying the single premium would equate to paying it for just over 29 month, which is a huge savings of over $12,300 versus paying the monthly mortgage insurance for 3 years. In this particular case, the clients chose to pay the upfront premium. However instead of using their own funds, the buyers negotiated a credit from the sellers in the contract to pay for the up-front mortgage insurance premium along with closing costs. These particular clients bought a $300,000 home with only 5% down payment and ultimately got their monthly payments down to $1816.00
A CNNMoney article noted that foreclosures have fallen for the 8th straight month in a row. In May 2011 filings were 33% below the same time last year. This article is quick to point out that this doesn’t necessarily mean a housing rebound. However it does suggest that those foreclosure deals may be few and far between.
Here a couple foreclosures that I recently previewed which appear to be pretty good deals.
2625 Nebraska: Located in Tower Grove East this one of the best values I have seen recently. This house sold in 2009 for $240,000 and is currently listed for $169,900. The kitchen has a center-island, updated cabinets and granite countertops. There are 4 bedrooms, 2.5 baths a master suite and 2nd floor laundry. Large deck and two-car garage out back.
2813 Shenandoah: This rowhome in Fox Park is one of the most interesting buildings in the neighborhood. It was last sold in 2006 for $219,000 and is currently listed for $110,000.
27 N Newstead: This single family home needs a little work but it is located in the Central West End. It is currently priced at $144,900. The price per square foot for this home is $82.99 while the average $/square foot for move-in ready sold homes in a 6 block area is $$131.38.
This Saturday, July 9th, 2011 the Arts Council of Lafayette Square will sponsor a movie night. Activities begin at 7PM and the movie starts at 830. There will be arts, crafts, games and performances by Jeff the Juggler and the Muny Teens. Food and drinks by ChaCha Chow.
Lafayette Square is one of my favorite places in the city. It is one of the most walkable neighborhoods in the city. The park is lovely and since it is situated between I-44, I-64 and I-55, it is easy to get to and from. It’s often thought of as one of the most expensive neighborhoods in the city which is partially true. It’s one of the few areas that can support values near $1 Million. An MLS search going back to 2001 showed the highest sale price to be $988,490. That was for new construction facing the park. However there are also move-in ready homes that start in the 150s. This diversity of housing stock is one of the great things about the neighborhood. There is something for everyone: first-time buyers, move-up buyers and down-sizers. It is this variety that keeps the neighborhood vibrant.
As of today (1 July 2011) there are 33 active listings in Lafayette Square priced between $119,900 and $995,000. My favorites are highlighted below.
2150 Lafayette: $995,000. This is a renovated 3 story home with 5 bedrooms and 3.5 baths. It has 8 fireplaces, impressive woodwork, gourmet kitchen and master suite.
1838 Kennett: $799,000. This home has a working cage elevator, restored carriage house with apartment and rare courtyard. The level of finish is impressive.
9 Benton Plc: $580,000. Situated on one of the premier streets, this home has been historically restored and is one of the best values in the neighborhood. With mature gardens, screened in porch and carriage house this home has plenty of entertaining space both indoors and out.
1815 Lafayette: $495,000. This 3-story mansard has a gorgeous facade. The first floor is perfect for entertaining and the second and third floor offer ample private space. Both bedrooms on the second floor are suite style and the third floor functions as private apartment. The carriage house offers more living space and the small but private garden is impeccable.
1911 Hickory: $425,000. The first floor has an addition off the kitchen which makes a great family room. The entire second floor functions as the master suite and side courtyard has a very “my secret garden” feel.
1621 Carroll: $329,000. This is a new construction home with 3 beds, 2.5 baths and 1 car garage. Tax abated until 2017!
1915 Lasalle: $249,900. The view from the 3rd floor is amazing. Possible to build a rooftop deck here! This row house has 3 beds and 2.5 baths. Lots of updates and historical charm.
2216 Hickory: $123,900 This fee-simple town home is the perfect starter home. It has 2 bedroom 1.5 baths and a tuck-under one car garage.
Dawn Griffin Real Estate Blog
I’m an experienced Saint Louis Realtor specializing in St. Louis City as well as neighborhoods like Webster Groves, Maplewood, Clayton, University City and Ladue. With an undergraduate degree in Education and Master's in Urban Planning and Real Estate Development — I have the heart of teacher.
I have been immersed in Residential Real Estate, helping home buyers and sellers understand the market, manage the ambiguities and negotiate the best terms for themselves. I am consistently voted a 5-Star Agent by clients and featured as one of St. Louis' Best Agents in Saint Louis Magazine.