Posts tagged as:

pmi

December 6, 2008

My fixed rate mortgage payments keep changing from year to year. Am I missing something?

Each period mortgage payment is in fact a combination of several payments: towards the interest, towards the principal (if the mortgage is not interest-only) and optionally towards PMI and the escrow. With a fixed rate mortgage the interest and the principal parts are usually unchanged unless you make extra payments, but the PMI and/or the [...]

September 12, 2008

How come my monthly payment has shrunk, while the rate has increased?

I can think of three reasons for that. One of them or any combination of them could result in such an illogical at first glance situation: • You made an extra payment towards the principal some time ago and now it’s taking effect. The balance has become so low, that even a higher rate cannot [...]

August 13, 2008

What is the minimum down payment required to buy a home?

Actually, there is no limit to the size of a down payment. It can even be 0% with certain kinds of mortgages, but you have to be able to qualify for it.  Another tricky part here is the Mortgage Insurance. If your down payment is lower than 20% of the purchase price (or the appraised [...]

August 1, 2008

How to avoid PMI or get rid of it sooner?

A borrower has to pay Private Mortgage Insurance (PMI) only if he cannot make a 20% down payment. So, the ways to avoid the insurance are the ways to find enough cash to be able to pay at least 20% of the price of the property in question. Nowadays, the following options are available: a [...]

February 22, 2008

Piggyback Mortgage (80/20 Mortgage)

Piggyback mortgages were quite popular before the year of 2007 as a tax deductible alternative for conventional PMI premiums. 2007 broke this subtle balance as Congress made PMI premiums tax deductible, too, but for that one year only. Being limited to certain restrictions and so far unpredictable future, PMI still leaves some room for the [...]

February 19, 2008

Private Mortgage Insurance (PMI)

If you are sure, that you will be able to put down at least 20% of the property purchase price, don’t bother to read this article – there is no way any lender should make you pay this insurance. Mortgage insurance is something that happens to you only if you cannot make a 20% down [...]