- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: First time home buyer
Posted on 2/2/16 at 6:06 am to Mars duMorgue
Posted on 2/2/16 at 6:06 am to Mars duMorgue
Private Mortgage Insurance (PMI)is usually required by the lender on conventional loans when you put down less than 20%. You pay a premium on a policy that pays the bank if you default and the proceeds of the collateral don't cover the balance owed. So it's a complete waste of money for you. Try to put down enough, pay extra principal early, or whatever, to get out from under it.
I put down just 5% back in the day, but I paid for an appraisal of my house a couple years later that showed it had increased in value enough that they then had a 20% cushion. Got out of PMI. The appraisal paid for itself in a few months of savings.
Title Insurance: The lender will require you to pay the premium on a lender's policy that covers the bank if there is a title dispute. You will likely have the option to also get an OWNER'S policy for some extra money.
Many waive it, but I say get it. It is a one-time premium that covers you as long as you own the place. You never know when a boundary/survey issue could arise, a lunatic illegitimate child of a prior owner shows up and claims he was left out of daddy's succession, or the like. Turn that junk over to the title insurer, and they provide a lawyer and cover any losses. Otherwise, you hire your own attorney, and just one or two of his hourly fees will likely exceed the premium you will wish you paid.
I put down just 5% back in the day, but I paid for an appraisal of my house a couple years later that showed it had increased in value enough that they then had a 20% cushion. Got out of PMI. The appraisal paid for itself in a few months of savings.
Title Insurance: The lender will require you to pay the premium on a lender's policy that covers the bank if there is a title dispute. You will likely have the option to also get an OWNER'S policy for some extra money.
Many waive it, but I say get it. It is a one-time premium that covers you as long as you own the place. You never know when a boundary/survey issue could arise, a lunatic illegitimate child of a prior owner shows up and claims he was left out of daddy's succession, or the like. Turn that junk over to the title insurer, and they provide a lawyer and cover any losses. Otherwise, you hire your own attorney, and just one or two of his hourly fees will likely exceed the premium you will wish you paid.
Popular
Back to top
Follow TigerDroppings for LSU Football News