Why Do I Need Mortgage Insurance?
Mortgage Insurance, sometimes referred to as Private Mortgage Insurance, is required by lenders on conventional home loans if the borrower is financing more than 80% Loan-To-Value. According to Wikipedia: Private Mortgage Insurance (PMI) is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. PMI isn’t necessarily a bad thing...
Read MoreUnderstanding An Amortization Schedule
By committing to a mortgage loan, the borrower is entering into a financial agreement with a lender to pay back the mortgage money, with interest, over a set period of time. The borrower’s monthly mortgage payment may change over time depending on the type of loan program, however, we’re going to address the typical 30 year fixed Principal and Interest loan program for the sake of breaking down the individual payment components for this particular article about an amortization schedule. On each payment that is made, a certain amount of interest is taken out to pay the lender back...
Read MoreHow Do I Calculate My Mortgage Payment Without Using A Mortgage Calculator?
Calculating an exact mortgage payment without a calculator on a loan is no small task, but there are some simple rules-of-thumb you can use to get a close estimate. With the exception of the MIT Blackjack Team, performing this type of complex math in your head often leads to frustrating rants. When coming up with a rough estimate, it is important to understand the individual components that factor into the overall monthly mortgage payment. Yes, the thousands of dollars you send to your lender every year may cover more than just the mortgage, but referring to one simple formula will help you...
Read MoreDo I Have To Continue Making My Mortgage Payment If My Lender Goes Bankrupt?
When mortgage lenders go out of business and are essentially taken over by the FDIC, homeowners are left wondering if they still need to make a monthly payment. Great thought, and a very common question for many borrowers in the 2006-2010 timeframe. The short answer is YES, you still have to continue making mortgage payments if your current lender files for bankruptcy or disappears over the weekend. In order to give a more thorough answer to this popular topic, we’ll need to address the relationship between mortgage loans as liens and mortgage servicers who make money by handling...
Read MoreShopping For A Hazard Insurance Policy
When shopping for a hazard insurance policy, something called “bundling” can actually save you quite a bit of money that most people aren’t aware of. Many of the big insurance companies price their insurance rates to attract a particular segment of the market. They usually price their hazard insurance policies to attract homeowners who need to insure not only their homes with hazard insurance, but also their cars with car insurance and lives with life insurance. The big insurance companies want customers who will stay with them for years vs shopping around for a better deal...
Read MoreWho Owns My Home If I Have A Mortgage?
Many borrowers believe that when they purchase a property by obtaining mortgage financing, they also own their home. Technically speaking, full ownership on a property only happens once the mortgage loan amount has been paid in full. To break this down in more detail, there are a few components of a mortgage: A Promissory Note is a document signed by the borrower acknowledging their commitment to pay the mortgage back with interest in a specific period of time. In addition to the terms of repayment, the Note also contains provisions concerning the rights of both parties involved in the...
Read MoreMortgage Calculator
 | ||||
 | ||||
