How to Avoid PMI? Know Your Options

Let’s say you’re buying a house or refinancing and you need PMI. What are your options (besides putting down 20%)? Take Two Mortgages to Avoid PMI That’s right. If you take two mortgages that add up to 90% or 95% (remaining 5-10% is your down payment), you can avoid paying PMI. How? Because your first… Continue Reading

Should You Pay Points?

Let’s say you’re about to buy a house. You’re at a family barbecue on the weekend. The sun is out, the kids are running around, there’s burgers on the grill. Your older brother comes up to you and asks if you found a lender yet. You tell him you got some quotes, and they’re all… Continue Reading

Understanding Interest-Only Mortgages

What is an Interest-Only Loan? Interest-only mortgage loans have an initial period where the monthly payments consist of just the accrued interest, instead of payments towards your principal balance as well. Once the interest-only period ends, you begin to repay the loan on a regular amortization schedule — meaning that by the end of the… Continue Reading

10 Tips for a Successful (and Beneficial) Mortgage Refinance

For most people, undertaking a mortgage refinance isn’t something they look forward to. The prospect of lowering monthly payments and paying less interest over the life of the loan are powerful motivators though, so let’s make sure your next refinance is your best. #1 Start by clearly identifying and defining your goals for refinancing. It’s… Continue Reading