100 mortgage calculators

100 mortgage calculators
From 1 January 2007, private mortgage insurance to a deductible expense for new borrowers with less than $ 100,000 of profit. The new legislation will help the home buyers can choose a risky piggy-back type of loan to Avoid PMI in recent years.

What is PMI?

In a conventional mortgage, a buyer is obligated to a 20% deposit on the purchase price of the home. Private mortgage insurance is paid if a buyer does not cover the full 20%. The fee is paid monthly by the buyer to protect the lender in case of foreclosure. It is paid to equity accumulates to a point where it is 20% owner of the apartment.

Avoid PMI with Piggy-back loans

In recent years, many buyers in an effort to avoid PMI have a piggy-back or as a secondary loan for the down payment. In this scenario, the second loan is often similar to a home-equity loans. Often, it is an adjustable interest rate and / or a balloon payment is due, in 3 a.m. to 5 p.m. years.

Yes, what is the best? PMI or Piggyback?

It really depends on your situation. With the deductible PMI aspect, it is worth once again. If your home appreciates, or if you are able in some "sweat equity" to the accumulated equity of the home of the 20% of the estimated value, in most cases, the PMI will be canceled. However, with a second loan, you will continue for the payments until the loan is paid in full.

To the best decision you discuss all options with your mortgage broker and or Loan Officer. Working with trusted experts to explain all aspects of the various loan products to help you in choosing the best mortgage that work to meet your financial goals.

Copyright 2007 Teri Eckholm

Teri Eckholm is a Minnesota Realtor with Keller Williams Premier Realty clients in the Twin Cities metro area for a period of six years. Selected as the 2004 and 2005 Super Agent by MPLS / St. Paul Magazine, her extensive sales and marketing background, it has the support of hundreds of customers in the city and in the U.S. Find additional information on Teri and get a FREE relocation package, or visit her blog at http://www.terieckholm.com http://www.mnrealestateupdate.blogspot.com