The Demand Institute, a research firm, released a study about millennials and home buying. It found: 75% believe home ownership is an important long-term goal 73% believe home ownership is an excellent investment 60% plan to buy a home in the future 44% think it would be difficult to qualify for a home mortgage. One of the Read more about Lease-to-Own: A Financing Option First-Time Homebuyers Love[…]
Front-End Ratio: Compares housing expenses to gross monthly income. Housing expenses include principle, interest, taxes and insurance. A good rule of thumb: the ratio should be 28%* or below. Housing expenses may include homeowners association fees, development taxes, homeowners insurance, flood insurance and mortgage insurance. Does not include: electric bill, cable or wifi. For example: homebuyers in Virginia Beach, Norfolk and Chesapeake, should consider housing expenses when Read more about Complicated Terms, Simple Definitions: Front and Back-End Ratios[…]
PMI and MIP insure the lender for any losses suffered if the borrower defaults on the payment. They are typically included in a monthly mortgage payment.Private Mortgage Insurance (conventional loans): The lender cancels PMI when LTV (loan to value) reaches 78% or 22% equity in the property. Loan to value means the amount borrowed in proportion to the current Read more about Complicated Terms, Simple Definitions: PMI and MIP[…]
Some reason your loan may not be approved.