Tag Archives | PMI

How Much Money Do I Need for a Down Payment?


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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What Determines How Much I Qualify For?

How Much Mortgage Do I Qualify ForIn addition to prevailing interest rates, how much you make in relation to how much debt you have will dictate how large a mortgage you will qualify for. Debt can trip up many would-be homebuyers, even those who make a good salary and have money for a down payment. The amount of money you will qualify to borrow is based on your total debt in relation to your total income. Read More

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