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Do you need Lender Paid Mortgage Insurance?

If you’re currently shopping for a new home or considering it in the near future, it’s important to understand the various provisions of your mortgage. One term you may see in your documents is the arrangement for mortgage insurance, which is paid for by either the borrower or the lender. Lender-paid mortgage insurance does have certain benefits, so it’s worth considering for your home financing. Here are the answers to some common questions. 

What is Lender-Paid Mortgage Insurance (LPMI)? In general, mortgage insurance is intended to protect the lender if a borrower defaults on a home loan. Most lenders require mortgage insurance if a borrower pays less than 20% down payment for the loan. You can opt to get private mortgage insurance (PMI) or agree to lender-paid mortgage insurance. With LPMI, your lender pays the mortgage insurance premium on your behalf and passes the cost on to you, usually in the form of a higher interest rate.  (more…)

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Mortgage Loans for Investment Properties

Purchasing an investment property can be a smart financial move for homeowners approaching retirement or anyone wanting to supplement their income. But acquiring a home for investment purposes isn’t the same as buying your primary residence: What you know from experience with mortgages is helpful, but there are additional factors when it comes to investment properties. Check out these tips before you start shopping.

Save up for the down payment. You can’t obtain private or lender-paid mortgage insurance for investment property purchases, so you’ll need at least 20% of the purchase price as a down payment. Plus, with an investment property mortgage, it’s also a good idea to save up a respectable sum of money for purposes of interest rates. If you can manage to put down at least 25%, you could qualify for lower rates to reduce your monthly payment. (more…)

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How Can an FHA Loan Help Me

How Can an FHA Loan Help Me

How Can an FHA Loan Help MeDespite the fallout from the mortgage crisis that developed a few years back, there are still many opportunities for people with less-than-stellar credit to obtain a mortgage to buy a home. The Federal Housing Administration (FHA) loan program may be an option for many individuals who thought their dream of owning their own place wasn’t possible. Here are the basics on FHA loans to help you determine if you’re eligible and how the program can benefit you.

FHA Loans 101: This type of mortgage is backed by the FHA, though the funding doesn’t come from that agency. In a nutshell, the FHA insures a loan for a borrower that secures a mortgage through an approved lender. The lender is motivated to provide the loan because the risk of loss is less if the borrower defaults. The FHA loan program enables people to own a home, despite the fact that they might otherwise not qualify – and interest rates are quite reasonable compared to traditional loans. (more…)

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Keep Your Home Cool This Summer

Keep  Your Home Cool This Summer

Keep  Your Home Cool This SummerIt’s summer, and the heat is getting practically unbearable. You drink lemonade, eat ice cream, and take cold showers to mitigate the heat, but you want a more long term solution. What home improvements can you make to keep your home cool this summer—and for many summers to come? Here are a few:

Central Air. If you’re keeping your home cool with fans, window air units, or a swamp cooler, then the time has come to invest in a central air conditioning system. A single unit circulates air to your whole house, allowing you to adjust the thermostat to you preferred temperature. (more…)

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How are Mortgage Rates Determined?

If you’re a first time home buyer and have never been involved with a mortgage before, you certainly want to learn all you can about financing options and the terms of your home loan. Your mortgage interest rate is one important factor that can help you decide which lender to choose to handle your loan, but you need to understand how this figure is calculated to weigh your options. Have a look at these mortgage rate basics to guide your decision making.

Your Credit Score: Your credit rating is a number that lenders look at to determine how reliable you’ll be in repaying your mortgage. In general, you can obtain a lower mortgage interest rate the higher your credit score. Potential home buyers should obtain a copy of their credit report before house hunting. You can fix any errors or repair negative credit history before the lender sees problems. (more…)

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Finding the Perfect Tenant

Real estate agent for rent sign with house in background

You’ve bought yourself a nice piece of rental property and gotten it fixed up. Now you just need one thing: someone to live in it. There are plenty of horror stories about renters who destroy property, refuse to abide by the rules, and generally make life miserable for their landlords. How can you avoid that? How do you find someone who will work well with your property and your policies? Of course, there’s never any guarantee, but there are a few things you can do to screen your candidates. Here are a few questions to ask when searching for the perfect tenant.

Why Are You Moving?

There are all sorts of reasons for moving to a new home. Maybe they just got a new job and have to relocate. Maybe they’re planning on starting a family. Or maybe they couldn’t get along with their previous landlord, or are being evicted. (more…)

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6 Benefits from a Cash-Out Refi

6 Benefits os a Cash out refi

6 Benefits os a Cash out refiIf you’re a homeowner with considerable equity in your home, you might want to consider a cash-out refinancing plan to finance home projects or eliminate high interest debt. In a nutshell, this arrangement allows you to initiate a new mortgage with a larger principle than your existing one – then, you obtain cash on the balance between the two amounts. Used responsibly, there are several advantages to a cash-out mortgage, including these top six benefits. 

You may be able to obtain a better interest rate. As compared to other types of property-based loans, a cash-out refinancing usually offers lower interest rates. Home equity, home improvement and business startup loans are typically a few fractions of a percentage higher. A lower interest rate means reduced monthly mortgage payments. (more…)

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Fun Housing Facts That Can Save You Money

Fun housing facts - Paramount Equity®

Saving for a House - Paramount Equity® If you are the type of person that wants to make your home the best that it can be, then you should take a look at these fun housing facts. There are so many simple things that you can do to enhance your home without breaking the bank.

Watering your lawn

If you want to get the most out of the water you use to water your lawn, then you should make sure that you do it after the sun has set. When you water your lawn during the day, you end up using more than you would if you did it at night. The sun makes the water evaporate very quickly – the more sun there is, the less water your lawn actually gets.

Winter sealing

It is common knowledge that people use (more…)

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