Private mortgage insurance is required when you purchase a home with a down payment of less than 20% of the sale price or the appraised home value, whichever is less. Your lender in this case will expect you to purchase a private mortgage insurance policy so that even if you default, he can compensate for the loss. So when you make low down payment on your home purchase, you pay for the insurance premiums on a monthly basis till you can build up sufficient equity in your home. You can avoid PMI premiums if you are approved for a piggyback
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The Right Time for Mortgage Refinancing
If interest rates have dropped by a percentage point or more since you got your first mortgage, refinancing could save you big bucks. And if you have enough equity so that your new mortgage is for less than 80% of your home’s value, you’ll be able to stop paying Private Mortgage Insurance (PMI), which will save you even more. Mortgage refinancing could also result in lower monthly payments, depending on factors such as: if any -points’ are paid to lower the interest rate on the new mortgage; how much cash is taken out at the time of refinancing; the duration
Continue readingKentucky Mortgage Usda Loan Zero Down Home Loans Still Exist
Kentucky Mortgage USDA Loan Requirements What are the Kentucky USDA Mortgage Loan Requirements? To decide if you qualify for an USDA Mortgage Loan, we will look at: “Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors. “Your credit history (this is important, but USDA”s credit standards are flexible). A FICO score of 620 or above is required for all loans “Your overall pattern rather than to individual problems you may have had. To be eligible for an USDA mortgage, your monthly housing costs (mortgage principal and interest,
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