Home owner,thinking about owning?-couple of things you should know

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Home Mortgages can be very confusing.  The first thing you have to do is do your research.

Couple of things I wanted to let you all know.

Most banks like for you to put 20% down as a down payment on your new home. 20% can be a lot of money depending on your circumstances.  But you can get a loan with less down.  When you do get a loan with less than 20% down you can expect to pay a PMI.

PMI is an amount that the bank adds on to your monthly payment because you did not put down 20%.  This is added on to your monthly payment until you build up enough equity to get it removed.

The tricky thing is you have to keep checking on this because the bank is not going to tell you when you have enough equity to have that amount removed!

What is PMI for a full description  Private Mortgage Insurance.

Another thing I want to bring to your attention is: You can normally take out a house loan for 15 years or 30 years.  In my last blog I went into this a little more.  You should weigh out the options and do the math.  You also have a choice of fix rate or an adjustable rate.

Please see LouAnn's likes for some further information on this, I hope it will help you with the information you need to make a wise decision when picking a mortgage.

Like I said in the first blog,  Home ownership is Personal!  Please do your due diligence before signing on the dotted line.

Good Luck!

 

 

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