http://stephaniebullock.cbvegas.com/blog/archive_202407/sort_entrydatetime-desc/ What is PMI?Private Mortgage Insurance (PMI) is a type of insurance that conventional mortgage lenders require from borrowers who make a down payment of less than 20% on their home. This insurance protects the lender in case the borrower defaults on the loan. PMI is typically added to your monthly mortgage payment and can range from 0.58% to 1.86% of the original loan amount annually. For instance, using NerdWallet’s PMI calculator, if you have a $400,000 mortgage with 10% down you could be paying around $450 in PMI a month depending on your PMI rate. How do you cancel that extra amount?How to Cancel PMI EarlyAlthough PMI is automatically canceled when your loan balance reaches 78% LTV (loan-to-value). For most conventional loans you can take proactive steps to have it removed sooner (please note that there are different stipulations to cancel PMI on government-backed mortgages like FHA loans):Make Extra PaymentsPaying more than your monthly minimum can reduce your principal balance faster, helping you reach the 80% LTV threshold more quickly.Timely PaymentsConsistently making mortgage payments on time is crucial. Lenders usually require no late payments in the last 12 months and no 60-day late payments in the last 24 months to consider PMI cancellation.Make Significant Home ImprovementsAdding value to your home with significant renovations like kitchen and bathroom remodels, room additions, or outdoor renovations like putting in a pool or patio, can help reach the LTV threshold sooner.Refinance Your Mortgage Refinancing your mortgage at a lower interest rate or to shorten the loan term can help you eliminate PMI faster. Additionally, you might use a home equity line of credit as a 2nd mortgage (80/10/10) to avoid paying PMI on the first lien.Evergreen Home Loans Can HelpEvergreen Home Loans offers a range of services to help you cancel your PMI. They provide financial planning guidance, refinancing options, and assistance with home value assessments. Their dedicated team ensures you have the support needed to navigate the PMI cancellation process smoothly.PMI can add significant costs to your monthly mortgage payments, but with strategic financial planning and support from Evergreen Home Loans, you can reduce or eliminate these payments sooner than expected. By making extra payments, maintaining a stellar payment history, improving your home, and considering refinancing, you can potentially cancel your PMI earlier, saving money in the long run. Take control of your mortgage with the help of Evergreen Home Loans and explore these options to achieve financial freedom from PMI.   http://stephaniebullock.cbvegas.com/blog/21309/understanding-and-cancelling-pmi-private-mortgage-insurance/ Fri, 19 Jul 2024 03:08:41 -0800 If homeownership is on your future goals list, you're likely working hard on your savings. A crucial part of this journey is having a plan in place for costs like your down payment, closing costs, and more. Here are some effective strategies to help you speed up the process and explore additional assistance options.Create a Detailed BudgetStart by creating a detailed budget that tracks all your income and expenses. This will give you a clear overview of your financial situation and help you identify areas where you can save.Eliminate Non-Essential SpendingWith your budget in hand, review your spending to identify non-essential items to cut. Allocate these funds towards your home-buying goals for a significant impact, as even small savings accumulate over time.Setup Automatic SavingsOnce you determine the amount you need to save, arrange for automatic transfers to your savings account. This will ensure consistency and help resist the temptation to spend.Maximize Additional IncomeIf you can take on a side hustle or already have one, use the extra income to increase your savings for a home purchase. Part-time jobs, freelance work, or other gigs can provide additional funds for your home purchase.Utilize Unexpected Income WiselyWhenever you receive unexpected money, such as tax refunds, bonuses, inheritances, or cash gifts, allocate it to your housing fund. These windfalls can significantly accelerate your savings progress.Explore Down Payment Assistance ProgramsMany first-time home buyers are unaware of the various down payment assistance programs available to them. These programs, often offered by state and local governments, non-profit organizations, and employers, can provide grants, low-interest loans, or tax credits to help cover the cost of a down payment. Research and take advantage of these opportunities to reduce the amount you need to save upfront.New Home Builder IncentivesBy purchasing a new home from a builder, you can take advantage of some of the cost-saving incentives offered. Some incentives that builders often offer are interest rate buy downs, closing cost incentives, as well as rebates and cash back incentives.Consider Federal Assistance ProgramsThe Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA) offer various loan programs designed to help first-time home buyers. These programs often require lower down payments and offer more flexible credit requirements, making it easier for you to qualify for a mortgage.Working with a RealtorAn experienced realtor is invaluable in your home-buying journey, with extensive market knowledge to find the best deals, negotiate effectively, and advise on true home values, potentially saving you thousands. Our expertise prevents costly mistakes, making your path to homeownership smoother and more efficient.By implementing these strategies and staying focused on your savings goals, you will be well on your way to buying your first home. If you need more tailored advice or strategy, don't hesitate to reach out please contact us or reach out to a CB sales professional at your nearest campus. http://stephaniebullock.cbvegas.com/blog/21308/first-time-home-buyer-saving-strategies/ Thu, 11 Jul 2024 04:37:24 -0800