1. What Is PMI, and When Do You Pay It? Private Mortgage Insurance (PMI) is a monthly cost added to your mortgage payment when you: Put down less than 20% on a conventional loan Have a higher-risk loan profile from the lender’s point of view PMI doesn’t protect you—it protects the lender in case you default. It usually adds 0.3% to […]
Worried You Need 20% Down? Here’s the Real Deal. If you’ve heard that you have to put 20% down to buy a home, you’re not alone—and you’re also not quite right. The idea of needing a huge pile of cash stops a lot of people from even trying. But the truth is, there are flexible,
1. Set a Clear, Realistic Goal Start by knowing how much you actually need. Your down payment could be as low as 3% to 5% of the purchase price, depending on your loan type. So if you’re buying a $300,000 home, that could mean $9,000 to $15,000. Once you’ve got your number, set a deadline
When it comes to buying a home, misinformation is everywhere — especially when it comes to mortgages.Some of it comes from well-meaning friends.Some from outdated advice.And some… is just plain wrong. Let’s clear the air. Here are the three most common mortgage myths that hold people back — and the truth behind each one. Myth
1. Pre-Qualification Is Just an Estimate Getting pre-qualified is like a financial snapshot. You tell the lender about your income, debt, and basic financial situation, and they give you a ballpark number for how much home you could afford. It’s quick, easy, and useful for planning — but it’s not based on verified information, so
1. A VA Loan Is Guaranteed by the U.S. Department of Veterans Affairs A VA loan is a government-backed mortgage that provides exclusive benefits for veterans, active-duty service members, and eligible surviving spouses. The U.S. Department of Veterans Affairs (VA) guarantees the loan, which means lenders are more likely to offer favorable terms with lower risks. Key benefits of VA loans include: No
1. An Assumable Mortgage Allows You to Take Over the Seller’s Loan With an assumable mortgage, instead of applying for a new mortgage, you can take over the seller’s existing mortgage—including the interest rate and remaining balance. This means you’ll pick up where the seller left off, keeping their favorable loan terms. If the seller has a lower interest