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My lender told me to stop rounding my down payment to the nearest $1,000 and my closing costs made sense
I kept guessing at the exact cash I'd need and got quoted three different numbers until an underwriter in Boise explained that every $500 in down payment shifts the monthly PMI by about $7, so I should just bring the odd number instead of a clean one.
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kim_davis18h ago
Wait, did the underwriter actually tell you that PMI drops by $7 for every $500 more you put down? That math doesn't really work that way. PMI is based on your loan amount and credit score, so the change is usually tiny and it depends on where your loan to value sits. A few hundred bucks in down payment almost never moves your monthly PMI by seven whole dollars, that would be a huge jump. Maybe they meant something about hitting a certain LTV cutoff instead, because one specific threshold can drop the PMI a lot more than the slow drip you'd get from rounding.
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