Filed under Mortgage by Uncle M | 0 comments
A PMI or Private Mortgage Insurance is a type of insurance required from people who obtain loans with less than 20% down. In other words if you plan to purchase a $300,000 home and don’t put down (300,000 x 20%=) $60,000 as a down payment you will be required to pay a PMI. A PMI protects the lender if the homeowner/borrower defaults on his payment and allows the homebuyers to buy a home with as little as 5% down payment. A PMI usally varies from 0.19% to 0.9% of the total loan value.
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Filed under Mortgage by Uncle M | 0 comments
Buying a home is not a easiest thing so a little bit of knowledge can make the process easier. According to wikipedia: “A mortgage is a method of using property (real or personal) as security for the payment of a debt.” Chances are if you are buying a house you will most likely need a mortgage unless you have the money and want to pay for the house in cash. There are different types of mortgages. The most common are fixed interest with fixed payments and other is ARM or Adjustable Rate Mortgage.
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Filed under Investment by Uncle M | 0 comments
A Real Estate Investment Trust or REIT is to real state what a mutual fund is to stocks. REITs generally invest into multiple types of real estate like apartment homes, condominiums, high rises, etc. There are three kinds of REITs:
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