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Personal Finances / Buying or Selling a Home

URL:  http://boards.fool.com/evaned-i-just-read-through-the-whole-thread-and-30650285.aspx

Subject:  Re: When can I qualify for a loan? Date:  4/23/2013  9:44 PM
Author:  jrdown Number:  125115 of 127683

EvanED ~

I just read through the whole thread and I wanted to bring up something that I encountered when I bought my first home. This was over 30 years ago and we had 10% down but had to pay PMI because we didn't put down 20%. The idea is that once your home is under 80% of the value then the extra monthly expense will stop. I will tell you that oftentimes the lien-holder does not wish to curtail this and you may have a bit of a struggle to have it removed. PMI (Private Mortgage Insurance) is to protect the lien-holder from you not paying your payment since you have so little "skin in the game". You may want to inquire about that when you look into financing.


Robyn
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