No Need to Fear the Topic of Private Mortgage Insurance if you Know the Facts
If you've done much research regarding mortgage financing, you've probably heard the term "Private Mortgage Insurance" ...
You may have also heard that Private Mortgage Insurance is scary or should be avoided. But in reality, in the right situations ... it can be the solution to your home buying and financing challenges.
What do I mean?
Let me start by explaining what Private Mortgage Insurance is ...
Private Mortgage Insurance, often referred to as PMI, is insurance provided by a private mortgage insurance company. The insurance protects Lenders against loss (to an 80% Loan Limit) if a … (5 comments)
When I first speak with new mortgage clients … especially those that are first-time home buyers … there's often a bit of confusion regarding what costs will be involved in the obtaining of their loan. After I've spent some time with them detailing the costs of their loan, I find that many say they were surprised to find that they’ll incur additional costs beyond the funds needed for down payment. (Unless, of course, they’re using a 0% down payment program). Many had incorrectly assumed that their down payment was all that was needed to buy. But it's a fact. There are … (14 comments)
Prior to my wife joining me in my business, she worked in a local travel agency owned and run by one of her best friends. For many reasons, she loved her job there. Can you think of a job that could be more fun that promoting travel and travel destinations? And the clients! They were typically a pretty upbeat, fun group. Especially those planning their honeymoons.
I think my wife would have stayed working at the travel agency forever had business not come … (19 comments)
Question is: What's "Acceptable" and "Unacceptable" to an Underwriter? Part 1 ...
Last week, I wrote a post entitled, "Hansel and Gretel were the original participants of "Survivor". In that post I related that pre-planning and preparation were key to Hansel and his sister getting back home safely and alive ... and drew the parallel to modern-day mortgage processing.
My point was ... pre-planning and preparation prior to entry and application for mortgage financing would more safely and quickly deliver you through your mortgage process into becoming successful home buyers. Keeping … (30 comments)
Your Mortgage Menu. Your Health Dictates What Choices You Have
Yesterday, I wrote a post regarding the possible re-emergence of 3% down, Mortgage Insurance-related mortgage products and their once again becoming an option for home buyers.
As I thought it would, it opened-up some discussion about small down payment requirements and the wisdom of exercising them. Personally, I feel this option, now being considered for re-introduction into the mortgage market, is much like any other financing option. It's an option open for exploration.
I believe the final decision regarding its use should be ... and will be dictated by the individual home … (13 comments)
downpayment: Spring is the season for new life, renewed hope, home sales activity ... and baseball
- 03/14/11 10:46 AM
What do you think of when you think of Spring? Warmer weather .. budding trees ... plants popping up. Newborn animals ... grass turning green ... kids outside playing again ... adults out sprucing up their yards. They all come to mind. But to me, nothing says Spring like Baseball. The two are simply synonymous. I guess it's not surprising then, that for someone that makes his living in the real estate mortgage industry ... the Spring Real Estate Market always takes on the feeling of a new baseball season. I view it as a time of … (4 comments)
The County of Will in Illinois, through a grant received as part of the Housing and Economic Recovery Act, has $40,000 in monies available in the form of down payment assistance for eligible buyers wishing to purchase foreclosed homes that will be rehabilitated by the County. It is stipulated that the 5.16 million received in grant funds must be utilized by no later than September 16th of this year. Homes in the following areas of Will County are eligible for down payment assistance: Unincorporated Joliet, Unincorporated Troy Township, Wilmington, University Park, Romeoville, Crest Hill, Godley, Braidwood, Lockport, Rockdale, and Crete. Stastically these areas were determined … (7 comments)
downpayment: Conventional Loans Versus FHA - The Pendulum Swings
- 04/10/09 11:11 AM
Historically, there has always been a rise and fall in popularity of particular lending programs. An example of this can be proven with the Adjustable Rate Mortgages (ARMs) that were so popular just a short time ago and are so terribly unpopular now. Merely whispering their existence makes heads spin, something akin to Linda Blair in the Exorcist. Now it is true that in many many cases, these ARM programs were promoted and utilized in lending situations that were definitely wrong or ill-advised. Some of the current mortgage predicament can be directly linked to their flagrantly inappropriate usage, but the unpopularity that currently surrounds them doesn't alter or disprove the fact that … (16 comments)
downpayment: Addressing First-Time Home Buyer's Worries ... Down Payments, Credit, FHA, & More
- 03/30/09 08:39 AM
I recently had an associate that forwarded an article to me regarding the findings of a survey conducted with prospective first-time home buyers. Being a mortgage banker, he knew the results of such a survey would naturally be of interest to me. The information contained within this article surprised me just a little bit, I have to admit. Maybe it's because I am employed within the real estate industry and sensitive to every move and gesture of it, but it seems to me that news, information, and opinions regarding our industry are everywhere and delivered non-stop. At times, it feels almost relentless. Still, the findings of this … (2 comments)
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