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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Paying off the mortgage is the day that all homeowner’s wait for. Mortgage terms feel as though they will last a lifetime. There is no other loan that takes as long to pay off. Paying off your mortgage early has many benefits that homeowner’s can look forward to. It is said that there are many disadvantages to an early pay-off, however the advantages tend to outweigh them.
Why pay off your Mortgage Early
Debt Free Living- Paying off the mortgage early leads to a debt free lifestyle that takes the cumbersome payment out of the equation. Continue Reading >>
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Paying off your mortgage early is not an impossible dream. In fact, it is perhaps one of the easiest things you can accomplish financially. The great news is that you can shave ten years off your mortgage payments, and pay off your home early, without ever having to cause yourself financial hardship or strain.
If you are interested in how to pay off your home in 20 years, you will be pleased to know that it can be accomplished in three easy steps.
Understand How Your Mortgage Works
Many people sign a mortgage blindly. They understand the concept of a mortgage, and realize they have to make payments for 30 years, but they don’t really know how the loan works. (more…)
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