USDA loans are a government program that provides low to middle-income borrowers with 100% financing. If you fit the income requirements, you can buy a home in a rural area with no down payment. Many people want to know if the USDA then charges mortgage insurance or PMI on the loan, like Read more
Top Ways to Avoid Paying Too Much PMI
If you put less than 20% down on a home and you use conventional financing you'll pay PMI or Private Mortgage Insurance. On the one hand, this insurance helps you get conventional financing, but on the other, your payment will be higher because of the PMI.Looking for Current Mortgage Interest Read more
Can Lender Paid PMI be Cancelled?
If you put less than 20% down on a home and you use conventional financing, you will need PMI. You have two options for the coverage – borrower-paid or lender-paid. Borrower paid insurance is when you make monthly premium payments until you owe less than 80% of the home’s value. You are able to Read more
Piggyback Loan or PMI – What’s Better?
If you are unable to put 20% down on the home you purchase, you have two options – pay PMI or take out a piggyback loan. Either way, you help lessen the risk the lender takes by providing you a loan without a large down payment. Both choices have the same end result – you secure more than 80% of the Read more
Don’t Want to Pay for Mortgage Insurance? Consider These Strategies
If you don’t put 20% down on a home, you’ll pay mortgage insurance in some form. If it’s a conventional loan, you pay PMI. If you opt for a government-backed loan, like the FHA or USDA loan, you pay annual insurance for the life of the loan. There’s no getting around it, unless you try one of the Read more
