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FACT: When purchasing a house with less than 20% down you
are required to pay for Private Mortgage Insurance (PMI) to
protect the lender (not you), in case you default on your loan.
PMI can cost you thousands of dollars! On a $100,000 loan
with 10 percent down ($10,000), PMI might cost you as much as $40 a
month. Since PMI does not go toward reducing your mortgage,
eliminate PMI payments if at all possible, and save thousands
of dollars over the life of your loan.
Examples of ways to eliminate the PMI:
- Put down 20% when you purchase the property.
- Pay extra toward your principal each month. Building equity faster
this way, while your home "appreciates" can help you eliminate
the PMI.
- Request that your mortgage company set you up on a bi-weekly
payment. This will allow an extra payment to be paid each year toward the mortgage, paying
your mortgage off years sooner by retiring your mortgage sooner.
- Educate yourself on different types of loan programs. Even if you've
already owned a home, you may
be eligible for "FIRST TIME HOME OWNER" loans, which might not require
PMI.
FACT: The extra money saved, from not paying PMI,
can be applied to your principal--building equity, while
retiring your mortgage sooner.
Since your goal is to eliminate the PMI from your monthly mortgage
payments, be sure to ask that prospective lenders put in writing
their specific requirements for early payoff or maximum principal
payments.
There are lots of lenders out there wanting to win your business.
Have a list prepared to discuss with your lender so you won't have
any surprises at the closing table or worse, years down the road.
Once again, ALWAYS get it in writing.
We have more real estate buying and selling tips that have helped other clients. Pick up the phone and call us when you are ready to talk.
The fastest way to reach us:
cell
918.306.1212 e-mail-
Edie Maitlen Rogers
cell 918.225.9481 e-mail-
Andrea Rogers Morris
Edie Maitlen Rogers and Andrea Rogers Morris are Realtors®
with Pancoast-Smith, Realtors 222 E. Moses Cushing, OK 74023
918.225.4198 selling real estate in the Cushing and Drumright, OK area.
Having begun her career in Metro Oklahoma City during the early 1990's, Edie has many contacts all over Oklahoma. Should you need a real estate professional in another part of the state, feel free to call Edie to refer you to one.
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