What is PMI?

If you’re preparing to make the transition from renter to first-time homebuyer, you’ve undoubtedly been told by wide-eyed veterans of the homebuying process (or renters who equate homebuying with certain poverty), “Watch out for that PMI.” PM what? PMI, as in Private Mortgage Insurance. It’s a fact of life for homebuyers who put down less than 20 percent on their homes (and with home prices on the rise, that’s most of us). From the lender’s perspective, PMI is a necessary protection. For homebuyers, it’s not likely to be the deciding factor that causes financial ruin; after all, you’ve got your principal and interest, which can make your PMI look like pocket change.

Nevertheless, first-time buyers often experience trepidation when they see that mortgage payment on paper for the first time, so the addition of a PMI isn’t a welcome sight. In short, the PMI adds a weighty cherry to the top of an already overwhelming sundae.
So how exactly does PMI protect your lender? First, let it be said that PMI was designed strictly for your lender’s protection and not yours.

 

Written By: Courtney Ronan. If you would like to continue reading, click here.

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What You Should Look for When House Hunting

If you’re shopping for a home and can afford to buy one, you couldn’t be in a better position right now. In many parts of the country, housing inventory is high and both home prices and interest rates are low and as a buyer, you can take advantage of that.

With so many properties on the market, you can probably take a more leisurely approach to house hunting without getting into a fast-paced bidding war. There is a caveat, however. The best homes priced properly for the market conditions will always be in higher demand.

As you begin your search for the right home for you, it pays to keep in mind things you need to check carefully so that they don’t cost you big bucks in the long run.

 

Written By: Diana Lundin. If you would like to continue reading, click here.

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What You Should Look for When House Hunting

If you’re shopping for a home
and can afford to buy one, you couldn’t be in a better position right
now. In many parts of the country, housing inventory is high and both
home prices and interest rates are low and as a buyer, you can take
advantage of that.
With so many properties on the
market, you can probably take a more leisurely approach to house
hunting without getting into a fast-paced bidding war. There is a
caveat, however. The best homes priced properly for the market
conditions will always be in higher demand.

Written By:Diana Lundin. If you would like to continue reading, click here.