Kevin Song's Blog
135 Stage Point Rd, Plymouth, MA 02360
For many people, summertime represents an ideal time to buy a residence. Ultimately, there are many terrific reasons to purchase a house in summer, including:
1. You can move after the school year ends.
When the school year draws to a close, you and your child can focus on relocating to a new residence.
Purchasing a house in summer guarantees that you can avoid the challenges commonly associated with relocating to a new residence during the school year. Instead, you and your child can spend summer looking for the perfect residence and buy a house before the new school year commences.
Furthermore, don't forget to consider the quality of schools near a residence before you finalize a purchase agreement. By doing so, you'll be able to find a home that is located near a great school for your son or daughter and ensure that your child can receive the best education possible.
2. You can complete many outdoor home improvement projects in summer.
Typically, purchasing a fixer-upper, i.e. a home in need of advanced repairs, may prove to be a viable option in summer.
If you buy a fixer-upper, you'll likely want to complete a broad array of home repairs immediately. Meanwhile, a summer home purchase ensures that you can enjoy warm temperatures for outdoor property improvement projects. As a result, you can perform roof repairs, home exterior maintenance and other outdoor home improvement tasks without having to worry about cold temperatures.
For those who are interested in finding a fixer-upper, there should be no shortage of properties available in summertime as well. Many home sellers add their properties to the real estate market in summer, guaranteeing that you can browse a large assortment of houses and find one that suits you perfectly.
3. You can work with an experienced real estate agent.
Buying a home in summer can be difficult, particularly for those who are exploring the real estate market for the first time. Lucky for you, many experienced real estate agents are available to guide you through the homebuying process.
An experienced real estate agent will help you find your dream home in no time at all. This professional understands the ins and outs of the summer housing market, and as such, will do whatever he or she can to help you discover the right house.
For example, if you are uncertain about how to obtain a mortgage, an experienced real estate agent can point you in the right direction. He or she may be able to put you in touch with nearby credit unions and banks, ensuring that you can secure a mortgage. Plus, your real estate agent might even be able to offer tips to help you boost your credit score before you apply for a mortgage.
This summer, collaborate with an experienced real estate agent to get the support you need to purchase a home. With an experienced real estate agent at your side, you can transform your homeownership dream into a reality.
92 Brookline St, Watertown, MA 02472
You can ask any homeowner-buying and owning a home is expensive. Mortgage payments, property taxes, utilities, and other bills quickly add up.
If you want to buy a home but don’t have a large down payment saved, odds are you’ve discovered something called private mortgage insurance (PMI).
PMI is an extra monthly payment that you make (on top of your mortgage payment) when you don’t have enough to make a large (20%) down payment on your home.
However, if you want to buy a home and don’t want to tack on an extra monthly payment for PMI, you have options. In today’s post, I’m going to talk about some ways to avoid paying PMI on your mortgage so you can save more money in the long run.
Before we talk about getting rid of PMI, let’s spend a minute on what to expect when you do have to pay it.
PMI typically costs 0.30% to %1.15% of your total loan balance annually. That means that your PMI payments will decrease a moderate amount as you pay off your loan.
Furthermore, once you have paid off 22% of your loan, your PMI will be cancelled and you’ll only be responsible for your regular monthly mortgage payments.
Getting PMI waived early
With conventional loans, you can request to have your PMI cancelled once you’ve paid off 20% of the mortgage. However, many buyers with PMI are using some form of first-time buyer loan, such as an FHA loan.
With an FHA loan, you’ll be stuck with PMI for the lifetime of the loan if you don’t make a down payment of 10% or more. That’s a lot of PMI payments, especially if you take out a 30 year loan, and it can quickly add up.
If you have an FHA loan with FHA insurance, the only way to cancel the insurance is to refinance into a non-FHA insured loan. And remember--refinancing has its own costs and complications.
Making it to the 20% repayment mark
On conventional loans, the best way to get rid of PMI is to reach your 20% repayment mark as soon as possible. That could mean aggressively paying off your mortgage until you reach that point.
This can be achieved by making extra payments, or just paying more each month. However, you don’t want to neglect other debt that could be accruing costly interest in favor of paying off your loans. Make sure you do the math and find out which debt will be more expensive before neglecting other debt.
Once you do reach the 20% repayment mark, you’ll have to remember to apply to have your PMI canceled with your lender. Otherwise, it will be canceled automatically at 22%.