Archive | January, 2016

How Much Money Do I Need for a Down Payment?

Downpayment

The “gold standard” for a down payment is 20 percent of the home’s purchase price. If you can afford to put down 20 percent, you will avoid paying private mortgage insurance (PMI). Private mortgage insurance insures the lender against possible default.

Borrowers who put down less than 20 percent are considered by lenders as higher credit and default risks. In these cases, borrowers must purchase Private Mortgage Insurance (PMI), and pay for it every month along with their monthly mortgage payment. Read More

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Single-Family Home or Condo: Which is Right For You?

condo_v_single famChoosing between a single–family home and a condominium is often a lifestyle choice.

A single-family home offers more privacy and freedom, but also more upkeep. With a single-family home, you own everything: yard, roof, furnace, etc. and you will have to maintain and repair all these items yourself. If the lawn needs mowing, it’s your responsibility. The same goes for plowing or shoveling, putting in a new furnace, painting the exterior, etc. You will also have to solicit bids and deal with contractors yourself. Read More

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