Private Mortgage Insurance and You
You may want to reconsider using private mortgage insurance to purchase Gulfport real estate because it poses many disadvantages that offset its value.
Private Mortgage Insurance Is Expensive to Maintain:
Private mortgage insurance is expensive to maintain because most lenders charge an additional $500 to $1,000 per year for each $100,000 you borrow. This extra payment can make purchasing a Gulfport home difficult because it can add as much as 15 percent to your monthly mortgage payment.
Private Mortgage Insurance Offers No Return On Your Purchase:
This is the case because your lender is allowed to keep any money you have paid for the insurance regardless of your ability to repay your mortgage on time. As a result, you could wind up wasting money that could be used for other financial needs.
Thankfully, there are several payment options that can help you avoid purchasing private mortgage insurance. Here’s brief overview of two of the most popular options that are available to Gulfport home buyers:
Pay Higher Interest Rates:
Many lenders will allow you to pay a higher interest rate in exchange for waving private mortgage insurance requirements. Using this arrangement can be worthwhile because you can often deduct the higher interest charges from your federal taxes.
Use a Second Mortgage to Purchase Your Home:
Some lenders offer dual mortgage programs that allow you to make a 5 to 10 percent down payment on a Gulfport home. These mortgage programs require you to take out a mortgage for 80 percent of the value of the home and another mortgage for the remaining value of the home that is not covered by your down payment.
Participating in these programs could be worthwhile because you could save money by paying a higher interest rate on a small portion of the value of your home instead of purchasing private mortgage insurance.
To learn more details about these programs, please feel free to contact us today.
“The best decision I made was choosing Amanda Hendry and her team as my Realtor for my first time buying a home. They walked me through every step and worked with my mortgage loan officer and with the seller to make sure everything was in order and done in timely manner. My first time buying a home was a journey and not an easy one and Amanda went above and beyond to get me in the home of my dreams. She showed me probably every house on the market in the locations I was searching for several mon…
Jennifer BatesGulfport, MS
Amanda and Associates helped me every step of the way through the difficult situation of selling my home. We had a difficult time in dealing with the lender and Amanda’s team made it much easier.
First off, let me say the pleasure was all ours. We appreciate the time McKinsey & her team took with us. She stayed on top of the situation and made things happen. It was our first time to use a Realtor and it was a pleasure with us. She answered questions immediately or found the answer for us in timely manner. We never felt pressured or uncomfortable. It was great doing business with her and the team and look forward to future business.
David & Summer Pipkins
They do very well in getting the information needed for you so you can decide on the property being reviewed. Very professional and quick to respond. They keep you informed on all steps during the process of the purchase.
“Amanda’s team really went above and beyond for me while trying to sell my house. I live out of state and Amanda was valuable in several aspects, even going as far as checking on the plumbing during the ice storm that struck south Mississippi this past winter. I’m very pleased with the service that was provided and I highly recommend them.”
“Amanda’s team helped us sell our house and they were fantastic! We had to move across the country and they were very prompt about finding a buyer and taking care of everything. Amanda has wonderful responsiveness and is very good about communicating all knowledge about selling a house. Highly recommend!!”
Andrea & Kyle Woodard
After browsing through houses for a few weeks on Zillow, Trulia, Movado, etc. I was feeling so overwhelmed and then God sent an angel! Mary called me out of the blue and I didn’t know what to do but accept her assistance. I am so glad I did! She has made the hassle of house searching and buying such a memorable and enjoyable experience. Mary has been upfront with us about each house we’ve looked at, giving us the positives and negatives. Mary wasn’t just interested in selling us a house. S…
Steven and Sarah Stogner
I have worked with Amanda and her team on several transactions, both as a buyer and a seller. They are very proactive, accessible, and responsive. The team knows the market very well, and lays out a well thought out and deliberate strategy to close a deal in a timely manner.
Without a doubt, this has been the best home purchasing experience. I am so impress with everyone at Amanda & Associates. David Becher was exceptional! He contacted me on a regular basis and understood my goals. Finding the perfect cottage on the Gulf Coast has moved me one step closer to retiring in such a beautiful and fun area. Brittany Brackett is another person I want to acknowledge. She consistently communicated with me on the administrative paperwork. Because of her attention to detail, …
“As a first time home buyer, I didn’t really know of what to expect. After meeting with Amanda and talking with her the first time, I felt comfortable enough to ask lots of questions and she was very patient with me. As we closed on our house today, I cannot be any happier that Amanda’s team is the one that helped me along the way. She has gone above and beyond my expectations. Thank you to your team for a great job!”