"Music is well said to be the speech of angels."Thomas Carlyle
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Rejected Hurricane Insurance Claims - Hurricane Katrina & Rita
Rejected Hurricane Insurance Claims - Hurricane Katrina & Rita The catastrophic damage caused by hurricanes Rita and Katrina have combined to be the costliest disasters in the history of the United States. They have completely destroyed costal towns and ...
The rising costs of Health Insurance
Recent United States Census Bureau figures show that approximately 85% of Americans have health insurance and that roughly 60% have employment related health insurance or as individuals and that various government agencies provide health insurance to 25% ...
Why you need Dental Insurance?
The most important reason why you need dental insurance is that dental diseases are quite common but very expensive to treat.Almost every member of the family needs to visit a dentist atleast once a year and sometimes more. Routine check-ups every year. ...
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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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