Month: February 2009

Important Things That You Must Know About Mortgage Insurance

Are you planning to buy a home? If you are planning to buy a home and you do not have enough money to cover the required 20% down payment, do not despair. With the help of mortgage insurance coverage, you can still buy your dream home even if you do not have enough money to cover the 20% down payment. Despite the financial crisis, there are still companies out there that are willing to finance the acquisition of your new home even if you only have enough money to cover about 10% of the needed down payment. All you need to do is get insurance coverage to cover for whatever losses the financial institution may sustain in case you default on your mortgage.

However, before you jump into the chance of buying a new home for just a little amount of money as down payment, there are a few important things that you need to know about mortgage insurance. To give some ideas of what you are getting yourself into when you get mortgage insurance coverage, here is some basic information about mortgage insurance for you.

Cost Of Mortgage Insurance

The cost of mortgage insurance may vary depending on several factors. Insurance companies usually look into the amount of the loan that you want and your capacity to pay the mortgage when they make assessment on your insurance policy premiums. They also consider your credits scores. If you happen to be one of those people who have very good credits scores, you may be able to get lower private mortgage insurance premiums. On the other hand, if your credit history is less than impressive, your insurance premiums may be a bit high. However, the good news is that mortgage insurance premiums seldom go higher than one to one and a half percent on the total cost of the property that you want to buy. This means that if the property that you want to buy is worth $300,000, you may have to pay a total insurance premium of about one to one and one half percent of that amount. Don’t worry; this amount will be spread over the term of your mortgage so you do not have to pay the whole amount of the mortgage insurance cost up front.

Mortgage Insurance Premium Is Not Tax Deductible

It is a bit unfortunate but the government still does not allow mortgage insurance premiums to be deducted from your income tax returns. Mortgage Insurance premiums are considered as your direct expense and cannot be passed on to the government as tax exemption.

A Guide to Government Foreclosure Real Estate

When it comes to a topic like government foreclosure real estate, there are a few important things that any potential buyer needs to be aware of. Whether you are looking to deal specifically with government land foreclosures or any other type of government foreclosure real estate, of course you are going to want to make sure that you only come out with the very best results, and so here is what you are going to need to know.

What You Need to Know

There are a few important pieces of information that are going to be important for you to be aware of before you get into the business of government foreclosure real estate. One is that experts have recently predicted an increase in the number of foreclosure properties on the market, and so you are going to want to be aware of this and know that now is probably the best time for you to make your move.

Foreclosure properties can be a terrific investment, and give you as a home buyer a much more affordable option than traditional properties. Some people are simply unable to purchase a regular home and so turning to government foreclosure real estate is really their only option here.

Before you go ahead with anything one of the most important things for you to do is learn about the different types of foreclosure properties that are out there. There are basically three different types to choose from, which are: NOD, NTS, and REO.

There are different details that go along with each which is why it is so important that you are aware of the facts on all before going ahead here.

You are also going to want to make sure that you secure financing early, for the best results. It is important for you as a buyer to be aware that you need to be pre-qualified before engaging in any discussions with a seller. Otherwise you are just setting yourself up for heartbreak really because you may find a home that you fall in love with but once you start getting into it, realize that you did not have the right plan set beforehand.

Government foreclosure real estate can be a wise purchase, as long as you go about it the right way and are informed going into it. Make sure that you are as educated as possible before going through with anything here, to ensure that you find the right home.