Ditech : Private Mortgage Insurance: How to Avoid Paying Private Mortgage Insurance

If you are in the process of purchasing your home without the necessary down payment you need to consider how Private Mortgage Insurance could affect your plans. Private Mortgage Insurance can add hundreds of dollars to your monthly payment amount unnecessarily. There are ways to secure financing for your home without paying Private Mortgage Insurance; here are tips to get you started.

Some people will tell you Private Mortgage Insurance is a good way to purchase your dream home without a 20% down payment; these people are probably selling Private Mortgage Insurance. If you accept Private mortgage Insurance you will be throwing your money away to pay those premiums unnecessarily.

Private Mortgage Insurance protects mortgage lenders from certain losses due to foreclosure. If you default on your mortgage the lender will recoup some of the expenses from seizing your home. Private Mortgage Insurance does nothing for the homeowner except drain your wallet. You can avoid this unnecessary expense by taking out what is referred to as a “piggyback loan” for the down payment amount you do not have.

This piggyback loan will typically come from a second lender; this means you will have two mortgage payments each month. There are lenders that offer 100% financing, you can even qualify for 103% financing to cover closing costs without Private Mortgage Insurance. Private Mortgage Insurance is a waste of your money. Anyone that tells you otherwise is selling something. To learn more about your mortgage options, including common mistakes to avoid, register for a free mortgage guidebook: “Five Things You Need to Know About Your Mortgage.”

Ditech : How To Choose A Mortgage Lender

Mortgage Lender provides financing to an individual for the purchase of property, or refinances a mortgage. There are many mortgage lenders. It is a jungle out there. It is hard to choose the best mortgage lender. This article teaches how to choose a mortgage lender.

Mortgage Lender analyses your current financial situation that is the needs, assets, liabilities, and income. Taking all the necessary information, the mortgage lender determines mortgage affordability. Then, the mortgage lender creates the best deal for the match the borrower needs.

Talk to friends and family about their favorite mortgage lender. From their experience, they will be able to rate the mortgage lender. At the same time, the borrower learns the pros and cons of each mortgage lender.

After you create a list of possible choices, you must compare rates for identical mortgage loans. There may be a catch on the lowest interest rate. You should also take note of the Annual Percentage Rate (APR). With the knowledge of APR, you will see the different fees, and cost associated with the mortgage loans.

Check for certification of the mortgage lender or broker. Certified mortgage broker has vast knowledge of many mortgage, and current regulations. Dealing a certified mortgage broker, you are in safer hands.

Ask for the terms, fees, discount points, penalties, and costs involve on the mortgage deal. The life of the mortgage is broken into several mortgage terms. For example, three, four, or five year term are common. Mortgage Lenders charges fees for a specific mortgage. Each mortgage lender may charge differently. Discount points are paid upfront to bring down the mortgage. Each point equals one percent of the principal which is total amount owing. And, the costs on mortgage could be appraisal fee and more.

The internet is a good source of information about mortgage lenders. In the internet, you can surf for customer reviews, and testimonials. Also, most stable, and reputable mortgage lender have a website. In the website, you can see what they offer.

To choose a mortgage lender is a daunting task. When you are in doubt, you can always avail for the most financially stable and highly reputable mortgage lender.