"When I am finishing a picture, I hold some God-made object up to it - a rock, a flower, the branch of a tree or my hand - as a final test. If the painting stands up beside a thing man cannot make, the painting is authentic. If there's a clash between the two, it's bad art."Marc Chagall
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Guide to Cheap Annual Travel Insurance Vacations are for fun, it means leaving behind your job and responsibilities for a while. Having travel insurance is one way of putting your mind at complete rest. It's a lot easier to enjoy your trip if you know ...
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When buying insurance, most people ask for "full coverage" without knowing what they're asking for. What's the problem? There is no such thing as "full coverage". While understanding your coverage is important for everyone, it is vitally important if ...
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Ideally, traditional mortgage lenders want new homebuyers to have a 20% down payment when purchasing a new home. Thus, if purchasing a $200,000 home, you should be prepared to have $40,000 as a down payment.
Unfortunately, many people do not have this kind of money lying around. For this matter, private mortgage insurance (PMI) was created as a way for mortgage companies to recoup their money if a homeowner defaults on the loan. There are various loans available to assist people with down payments. In some instances, homeowners can obtain 100% financing, and avoid PMI
What is Private Mortgage Insurance?
Because Americans are earning less money, and home prices are steadily increasing, the majority of the population is unable to save the recommended down payment of 20%. In order to make owning a home possible, mortgage companies created a particular mortgage insurance, (PMI), for people with less than 20% to put down on a home. This insurance protects the lender if you default on the mortgage.
How to Avoid Paying Private Mortgage Insurance
On average, PMI may increase your mortgage payment by $100 – sometimes less, sometimes more. However, there are ways to avoid paying this additional insurance. The obvious involves having at least 20% as a down payment. If this is not an option, homeowner may agree to a higher interest rate. Another tactic entails getting approved for 100% financing.
How Does 100% Mortgage Financing Work?
100% mortgage financing makes it possible to buy a home with no money down. Also referred to as a piggyback loan or 80/20 mortgage loan, 100% mortgage financing involves obtaining a first mortgage for 80% of the home cost, and a second mortgage, or home equity loan, for 20% of the home cost. Together, the first and second mortgage allows a home purchase with no money down, and no private mortgage insurance.
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