Home Equity – Let the Market Eliminate Your Private Mortgage InsuranceWritten by Charles Essmeier
In decades past, most people who were interested in obtaining a home loan were required to put down at least 20% of purchase price. Those days are gone, and as home prices have risen faster than incomes, average down payment required by lenders has dropped. In fact, it is often possible to buy a home with no down payment at all. Nationally, average down payment is a 3%. It’s nice to be able to buy a home with such a small amount of ready cash, but there is a downside – if down payment is less than 20%, lender requires that private mortgage insurance (PMI) be added to house note.
No one likes to pay PMI; payment doesn’t go towards paying off house and payments aren’t tax deductible. And PMI payments aren’t trivial; monthly PMI payment on a home priced at U.S. median price of $206,000 with a 3% down payment is $129. Lenders require that borrowers pay PMI until borrowed amount becomes less than 80% of value of home. In years past, this has meant that homeowners had to pay PMI until they had paid enough of loan balance to reduce debt to less than 80%. Times have changed, however, and many homeowners may be eligible for a faster way
Refinancing Your Home Mortgage Loan With Bad CreditWritten by Carrie Reeder
There are numerous reasons a person has bad credit. Late or partial payments, missing payments, and too many outstanding debts could all be factors that have left you with a poor credit rating. If you want to refinance your current mortgage but are afraid a poor credit rating will disqualify you, be aware that there are mortgage lenders that can help you qualify for a loan. Refinancing your home with bad credit is not impossible. Mortgage lenders can help you be approved for a home refinancing loan and will offer you advice on how to improve your credit rating.
Bad credit can result from many other factors besides missing or making late payments. Illness, unexpected expenses, and unemployment can affect your credit rating adversely as well. When you refinance your existing mortgage you may even be able to get cash back to help you pay off your debts and restore your credit rating. Regardless of your credit history, you can be approved for a home refinance loan. You could lower your monthly mortgage payments and have extra cash you need to pay off high interest debts. Refinancing with bad credit is not only possible; you could be approved quickly when you apply for a refinancing loan online. Online lenders can offer you free quotes and great terms, even with bad credit.