search foreclosure information

New to Avoid-Foreclosure-Services? Here you'll find a free answers to foreclosure questions and how to stop foreclosure!

help prevent foreclosure Simply quote your foreclosure refinance and receive a free advice from foreclosure specialists. You have nothing to loose. Compare ways to stop foreclosure safely and securely.

Relevant searches
What other people who read this article are searching for:


  • Bank Owned Life Insurance
  • Mortgage Forclosures
  • Mortgage After Foreclosure
  • Foreclosure Loan
  • Mortgage Foreclosure
  • Suntrust Mortgage Foreclosures
  •  

    Amortization and Private Mortgage Insurance (PMI) - Two Mortgage Terms Everyone Should Know
    by Scott Watts


    I would like to discus two mortgage terms that every one looking to find a mortgage should know amortization and private mortgage insurance (PMI).

    Amortization:

    Amortization is the process by which your monthly loan payment is determined In an Amortized loan you make periodic or monthly payments.

    In an amortized loan the amount of the loan payment is determined by the size of the principal on the mortgage, the type of mortgage, the interest rate on the mortgage, and the number of payments you are too make.

    If you have a Fixed Rate Mortgage your payments will be the same over the life of the loan. While if you have an Adjustable Rate Mortgage (ARM) your monthly payments will change with the change in interest rates.

    How the loan payment is decided?

    When you take out a loan the total amount of money that you borrow is called the principle. This is usually the price of the house minus the down payment. Interest is the amount of money that the bank or lender charges you for the loan. It is a percentage of the principle.

    In an amortized loan your monthly payment is the principle divided by the number of payments plus the interest, taxes, and PMI.

    Your monthly mortgage payment will first go to paying part of the interest on the loan and then it will go to paying part of the principle. In the beginning of the loan the majority of your loan payment will go to the paying of interest. This will change over the life of the loan. By the time you are half way through the loan your mortgage payment will go equally to interest and principal with each month after having a larger part of the payment going towards the principle.

    Private mortgage insurance:

    Private mortgage insurance is a great tool for those of us who do not have the typical 20% down payment.
    A lender will always want you to put down the largest down payment as possible. In general they are looking to receive 20% of the purchase price of the house. Unfortunately not all of us have the funds for a 20% down payment. In a lot of cases you may only have 10% or as little as 3% for a down payment. This is where Private mortgage insurance comes in.

    In a way private mortgage insurance makes up the difference between what you have for a down payment and the 20% the bank is looking for. Lenders allow lower down payments with PMI because Private mortgage insurance will pay the mortgage if you can't pay or if you go into default on the loan.

    Let's give an example of how PMI works

    Let's say I have $20,000 in the bank for a down payment on a house. If my only option was to put down a %20 down payment I could only afford a house with a maximum value of $100,000. But if I can purchase private mortgage insurance and put down %10 I could afford a house with a maximum value of $200,000. With a %5 down payment my purchasing power goes up to $400,000.

    Remember that with lower down payment you have to buy PMI. For a loan of $200,000 and a %10 down payment your payments might be around $80 a month. PMI payments are usually paid as part of your monthly mortgage payment and are placed in escrow until it is time to pay the premium

    The cancellation of PMI

    The Homeowners Protection Act of 1998 requires that PMI be canceled once the owner has reached %22 equity in there home (based on the original property value) on mortgages signed on or after July 29, 1999. Once you have reached the %20 equity mark you can also request that PMI be canceled. If you signed your mortgage before July 29, 1999 then you may request that PMI be canceled once you have reached the %20 mark but they are not required to do so.

    There are a few possible exceptions like if you have not kept your payments current; if there liens on the property or you are considered a high risk loan. You should see what the laws are in your state you might have more protections especially for those who sing before July 29, 1999.

    Scott Watts writes on Motgages, credit reports, Identity theft and other topics. For more information about basic mortgage terms like Equity, Escrow and Closing Costs visit Independent Loan Information.

    More info on your stop foreclosure information search:

    Get Free Foreclosure Advice and Free Refinance Quotes
    Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...


    Reverse Mortgages
    REVERSE MORTGAGES Banks and housing finance companies are reading themselves to bring out their reverse mortgage products. We all know that reverse mortgage will enable senior citizens to mortgage their property with a bank / finance company and receive monthly payments. At the end of the term or ... more...

    Real Estate Investing - Creating Your Power Team
    Every person or company that achieves great success always does so with the help of others. No one can do it alone. Yet many people who start real estate investing or any business try to do everything themselves. This severely limits their ability to succeed, as everyone has a limited amount of ... more...

    What Is Mortgage Terms?
    When looking at getting a mortgage, there are some terms that you should familiarize yourself with so you know what your mortgage lender is talking about. Below is a list of the most commonly-used "mortgage phrases" and their meanings to help you understand them better: Adjustable Rate Mortgage ... more...

    Bank Repossessed Home Auction Takes Its Toll In Michigan
    Many foreclosures occur everyday, and it happens anywhere around the globe. This may be due to unforeseen circumstances that are unavoidable and many homeowners lose their homes to lender-banks. What they don't know is that this may be just the beginning of a financial tsunami in their life. With ... more...


    More on bank owned life insurance...

     

    avoid foreclosure services
    Home
    search foreclosure info answers
    Search
    about  us
    About
    privacy policy
    Privacy
    terms of service
    Terms
    contact us
    Contact
    information for doeclosure specialists
    Agents
    Foreclosure Refinance: Stop Foreclosure Refinance , FHA Foreclosure Refinance, VA Foreclosure,
    Ways to Stop Foreclosure: How to avoid losing your home, Foreclosure Help Loans, We pay cash for houses, Foreclosure Mitigation, stop foreclosure in Alabama, stop foreclosure in Alaska, stop foreclosure in Arizona, stop foreclosure in Arkansas, stop foreclosure in California, stop foreclosure in South Carolina, stop foreclosure in North Carolina, stop foreclosure in Colorado, stop foreclosure in Connecticut, stop foreclosure in Dakota, stop foreclosure in DC, stop foreclosure in Delaware, stop foreclosure in Florida, stop foreclosure in Georgia, stop foreclosure in New Hampshire, stop foreclosure in Hawaii, stop foreclosure in Idaho, stop foreclosure in Illinois, stop foreclosure in Indiana, stop foreclosure in Iowa, stop foreclosure in New Jersey, stop foreclosure in Kansas, stop foreclosure in Kentucky, stop foreclosure in Louisiana, stop foreclosure in Maine, stop foreclosure in Maryland, stop foreclosure in Massachusetts, stop foreclosure in New Mexico, stop foreclosure in Michigan, stop foreclosure in Minnesota, stop foreclosure in Mississippi, stop foreclosure in Missouri, stop foreclosure in Montana, stop foreclosure in Nebraska, stop foreclosure in Nevada, stop foreclosure in New York, stop foreclosure in Ohio, stop foreclosure in Oklahoma, stop foreclosure in Oregon, stop foreclosure in Pennsylvania, stop foreclosure in Tennessee, stop foreclosure in Texas, stop foreclosure in Utah, stop foreclosure in Vermont, stop foreclosure in Virginia, stop foreclosure in Virginia, stop foreclosure in Washington, stop foreclosure in Wisconsin, stop foreclosure in Wyoming
    Foreclosure Laws: How to avoid losing your home, Alabama, Alaska, Arizona, Arkansas, California, South Carolina, North Carolina, Colorado, Connecticut, Dakota, DC, Delaware, Florida, Georgia, New Hampshire, Hawaii, Idaho, Illinois, Indiana, Iowa, New Jersey, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, New Mexico, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Vermont, Virginia, Virginia, Washington, Wisconsin, Wyoming
    Avoid-Foreclosure-Services.com is a free tool to find foreclosure information when your need it most. Avoid-Foreclosure-Services.com is not a lender, broker, foreclosure mitigation company, or affiliate of any foreclosure financial services. © 2007-2008