DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing All About Mortgages
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Jan 31, 2025 In this engaging discussion, a mortgage expert shares insights on navigating the complexities of securing a mortgage. Key topics include the differences between fixed and adjustable rates and the importance of a 20% down payment to avoid private mortgage insurance. The hosts also cover vital steps for a successful mortgage application and common pitfalls during refinancing. Listeners gain valuable knowledge on loan types, payment limits, and the necessity of thorough loan estimate reviews, making the mortgage process a bit less daunting.
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Adjustable-Rate Mortgages (ARMs)
- Understand adjustable-rate mortgages (ARMs) before getting one.
- ARMs offer a fixed rate for an initial period, then adjust annually, potentially increasing your payments.
Down Payment and PMI
- Put down a 20% down payment if possible to avoid private mortgage insurance (PMI).
- PMI protects the lender if you default, but it adds to your monthly payment.
Mortgage Process and Documentation
- Consult with a bank or mortgage broker to understand the mortgage process and required documentation.
- Be prepared to provide pay stubs, bank statements, W-2s, tax returns, and potentially 1099s.