Mortgage matters

Saving on Private Mortgage Insurance (PMI)

Recently, my car insurance nearly doubled. No, I didn’t have an accident or get a ticket. I was up for annual renewal, and the algorithm at the company changed. My heads-up insurance agent noticed the change and moved me to another company. With the change, this year’s car insurance will be about $150 less than

By |2019-08-20T12:16:26-04:00August 14th, 2019|Categories: buying process, Mortgage matters|

What is PMI and why do you have to pay it?

Private mortgage insurance (PMI) is an additional fee that borrowers who don’t have a 20 percent down payment must pay. It insures the lender, not the borrower. The lender’s costs to foreclose and resell the property could be more than the amount the borrower put down, initially, unless the lender has 20 percent up front.

By |2019-07-11T14:50:53-04:00July 17th, 2019|Categories: buying process, condo issues, Mortgage matters|Tags: , , |

Waiving Mortgage Contingency

1. Most of the time, if you have a documented pre-approval, you will get your mortgage, so a mortgage contingency is not really necessary, right? Wrong. It is only unnecessary if: You can afford to lose 5-10 percent of your purchase price. The mortgage contingency gives you a date by which you can get that

By |2018-09-16T12:53:33-04:00September 26th, 2018|Categories: Money and finance, Mortgage matters|

Better Financing as a Negotiation Tool

The trend has been for listing agents to encourage their clients to accept offers that have  better financing. Because of this, commercial investors have a strong advantage because they frequently purchase for cash or with very high down payments. Whose interests are being served by rushing offers, then choosing buyers who are going to resell

By |2018-06-29T10:17:36-04:00July 18th, 2018|Categories: Mortgage matters, Negotiating|

About Pinnacle Mortgage

Looking to borrow more than the Fannie Mae limit, but not to pay a higher rate for a jumbo mortgage? Looking to borrow with less than 20 percent down? Looking to buy a condo and your lender says the condo is "unwarrantable"? Today, I share some different lending ideas for you from Paul Sammons from

Two-Income Trap

In The Two Income Trap, Ms Warren and Ms Warren Tyagi wisely advise families to prepare for emergencies ahead of time. I am thinking of copying the chapter “The Financial Fire Drill” and giving it to my clients before they start house hunting. They pose three questions: Can your family survive for six months without one

By |2018-04-08T15:31:05-04:00April 18th, 2018|Categories: Money and finance, Mortgage matters|

Credit Fraud. House Hunters’ Guide

How will the Equifax data breach in 2017 affects your house hunting? Equifax's mistakes in September, 2017 gave away the social security numbers of half of us. Are you in the lucky half, or the unlucky half? Here is the story That data will be sold and resold by criminals for years to come. If you are

Credit score changes. Who loses?

You know that real estate bubble I keep saying is inflating? It just got a pump of air. I agree with Jim Morrison at Banker and Tradesman that easing credit restrictions is the wrong thing to do. It didn’t go well in 2006, and it won’t end well this time. What’s happened? Credit reporting has

Higher interest rates

Do you know what it will cost you to borrow at a higher interest rate? If your rate changed from 3.5 percent to 3.75 percent, the cost would be an additional $14 per month, per $100,000 of principal. This increases slowly to $15 per month, per $100,000 when the interest rate changes from 4.5 to