Spend less on your Loan, Avoid PMI
With gas prices soaring and bills turning up it is important to lower your expenses in any manner possible. The same holds true when financing a home. All loans are not created equal. Some loans have costs that you ought to avoid. Among those costs is PMI. I think you should avoid this cost whenever feasible!
Pmi (PMI) is insurance that this lender requires on loans that have below 20% down payment. This may run you somewhere between 80-200 dollars a month! This may put the house you have always wanted from your budget. Luckily, in most cases, strategies around these extra costs.
The best way to avoid PMI is to discover lender with programs that finance above 80% without having charging PMI. At Fifth Third Bank We've a chance to finance loans approximately 100% without charging PMI. These loans will have guidelines that you need to qualify for but if you do meet the requirements then take it! You may end up in your home without deposit no PMI. If you do not qualify for these programs don't get worried, there is one other way!
You can also not pay PMI by doing an 80/20 loan. Such a loan splits the financing up into two different loans. Imaginable this as borrowing money through the bank being a advance payment. You may be carrying two loans at two different rates of interest.
The 1st mortgage, which could make up 80% with the price, will be on the lower rate. The next mortgage will likely be over a slightly higher rate, but your payment is going to be less than deciding on a loan with PMI. The second mortgage is also tax deductible. PMI is NOT tax deductible!
The specific game is saving money! If you are looking around for the mortgage be sure to ask your loan officer about special programs that avoid PMI. If you fail to qualify for these then ask about their 80/20 programs. Mortgage shopping can be confusing and frustrating, however it does not have to become. Look for a lender who wants to conserve your funds. Good luck and have fun!
