29 Nov 2019
By Mark Feder

How Much Of A Down Payment Should I Make On My Home?

Mortgage
There are a lot of steps that people need to take when buying a home. One of the most common issues that people discuss is the down payment. Most banks will require a down payment so that they aren't the only ones taking on the risk of buying a home. The common question people have is how much of a down payment they should apply. The Rule Of Thumb Most people have heard about placing 20 percent down on a house as a solid rule of thumb. This number has been passed down from prior generations who purchased houses with…
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25 Oct 2019
By Mark Feder

3 Ways To Avoid Mortgage Insurance

Mortgage
When you are buying a home, you may run into a number of hurdles to complete the purchase. One of the items that you may be asked to purchase is called private mortgage insurance, often shortened to PMI. This is a unique insurance policy that your lender, such as the credit union or bank, may ask you to buy in order to protect themselves. In this insurance policy, the bank protects themselves against losing money if you end up defaulting on your loan. Unfortunately, if you are asked to purchase PMI, this will increase your monthly mortgage payment. Therefore, most…
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05 Sep 2018
By Mark Feder

Does Private Mortgage Insurance Make Sense For You?

Mortgage
If you are reading this article, it's entirely possible that you are considering buying a home. It's also likely that you are weighing certain financial options between a sizable down payment or taking on the expense of mortgage insurance. It's important to understand that private mortgage insurance (PMI) helps mitigate the lender's risk. It has little benefit to the homeowner, other than help facilitate the mortgage approval process. Home buyers would be well advised to understand the complexities of PMI because not everyone needs or can afford the additional cost. Do You Need PMI? PMI reduces the lending institution's loss…
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22 Feb 2013
By Mark Feder

Will You Need Private Mortgage Insurance on Your Mortgage Loan?

Mortgage Guidelines
  Have you heard the term Private Mortgage Insurance (PMI) when looking to finance real estate? You may be wondering what PMI is and how you know when you need to purchase it. These answers can be hard to find among all the real estate jargon you might be hearing lately. Below is the short version of what you need to know. What is Private Mortgage Insurance? Private Mortgage Insurance is an insurance premium required by some lenders to offset the risk of a borrower defaulting on their home loan. When you put down less than 20 percent of the…
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