Private Mortgage Insurance (PMI) is required on a conventional loan when the down payment is less than 20% It will be removed once the equity on the home reaches 22% based on the original value. However, there are different ways to eliminate PMI sooner rather than waiting for the equity to build up based on the original price or value. Keep reading to find out ways to remove PMI without refinancing soon that you thought was possible.
by Jaime Beus Kinman, Guaranteed Rate
Where will home loan rates go during 2010 and why? Rates are going to be higher in 2010. There will be more supply coming to the market in the first quarter, while the Fed’s purchase of mortgage backed securities will be winding down. They pledged over a year ago to purchase $1.3 Trillion which has kept rates low with demand high. In fact rates are about 1% lower than they would be if they weren’t participating in the purchasing program.