First-time buyers needing mortgage advice

xmatt0926x · Joined: 06 Jun 2006 Posts: 1

Hello. my wife and I are first time buyers and will be applying for mortgage pre-approvals shortly. We really cant wait too much longer to save for both a down payment and closing costs so we are going to try to get 100% financing and use the cash we have for the closing costs.
I am clueless when it comes to the different mortgage options, but my research has led me to believe that an 80/20 mortgage would be the best option since you could avoid PMI. Now however, I'm starting to see some articles here and there that suggest that using lender paid mortgage insurance is a better idea in some cases. Is this simply due to the fact that the second mortgage of an 80/20 will have fluctuating rates and may end up costing more monthly than a LPMI 100% loan?
Are there 80/20 programs where the 20% mortgage is fixed as well? We just are overwhelmed by all of this and I just dont know who to trust for honest advice. Ive tried to get some info from a couple of loan advisors, but it seems like they want you to apply with them before offering even the most basic of answers. Here is our info if it helps:

$117 combined income (100 base, the rest is consistent overtime)
both of our credit scores are mid to high 700's
about $780 in total monthly debt (car loan, credit card)
Looking to buy a single home in NJ for around $290-300,000.
If we are offered anything other than an 80/20, Id just like to know if certain circumstances would make it beneficial to us not to go with the 80/20. Any thoughts would be greatly appreciated!!!

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

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