NLIC.org

Patricia Said:

We are getting a mortgage through Wells Fargo.?

We Answered:

You might have looked at APR which is always higher than the actual interest rate, ask them.

Earl Said:

I need help on this economics essay!!?

We Answered:

try investopedia.com. it's like wikipedia.com, but it focuses on explaining finance terms. you can look up all the terms there.

Kristina Said:

Does Private Mortgage Insurance change yearly?

We Answered:

Most conventional loans require you keep paying PMI on the loan balance until you pay off a huge part of the loan or until you prove (by paying for a new appraisal) that you have a very large equity. The exact percentages depend on the company making the loan but it is usually more like 30% or more.

If you have 20% or more equity in the beginning then you are not required to establish PMI but getting it removed once you have it is much harder.

Kyle Said:

Want to buy new home - mortgage questions?

We Answered:

First, what is your home worth? Any increase in value (less your cost to sell it) can be added to your down payment for a bigger home. So take your $10,000 plus your appreciation to see what your down payment can be.

Second, how much will your next home cost? Typically, you do not have to pay PMI if you can make a 20% down payment. So if your down payment will be $25,000, you could avoid PMI on a $125,000 house.

The best advise I can give anyone looking at a buying a home is to get loan approval from your bank before you go house hunting. That way, you really know what you can comfortably afford and are not as likely to be persuaded or charmed by the perfect house to commit yourself to more than you should. Also, being pre-qualified makes you an attractive buyer, as there are fewer contingencies on the contract.

Whatever you do, make sure the purchase of the new house is contingent on the sale of your current home. In this economy, you do not want to get stuck with two houses!

Ruby Said:

Can I take out a separate loan to pay 20% down and avoid PMI on a conventional mortgage?

We Answered:

accept the inconvenience and cost of the PMI for now.
then, instead of re-fi'ng, start paying down the principle rapidly and
when you have the 20% equity built up, then the PMI will stop.