Private Mortgage Insurance (PMI) is required by most lenders when a
borrower puts less than 20% down on a purchase loan. Paid for by the
borrower, PMI not only protects the lender from foreclosure, it also
enables many buyers to qualify for loans and purchase real estate when
they couldn't have otherwise. On January 1, 2007, legislation went into
effect making PMI tax deductible for new borrowers whose personal
adjusted gross income is $100,000 or less. This has created additional
opportunities for many buyers to finance a more expensive home or, in
some cases, to obtain a lower monthly payment, while reducing annual
income taxes.
In most cases PMI can be cancelled once the accumulated equity has reached 20% of the home's value, while a second home loan will have to be paid back in full regardless.
Choosing PMI is not a one-size-fits-all decision. It is my job to weigh my borrowers' long-term goals and to provide comprehensive solutions that clearly explain all of the pros and cons of each mortgage option available. It's a job I take very seriously.
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ReplyDeleteShop Insurance
Yes, it is true that shorter tern of mortgage is lower term of interest rates.
ReplyDeleteHome Loan Interest Rates
Short terms might have small interest rates but the problem is that if the borrowers are able to pay the monthly amount. But this is a matter of choice for one's convenience..
ReplyDeletePlease visit me at PMI Insurance.