Mortgage Archives – Page 13 of 148 – Fred Gruber

29

Aug

Mortgage

What To Know About Property Lines

What To Know About Property Lines If you are in the process of buying a new home, you know that there are a lot of moving parts involved. You need to know everything you can about a potential house before you decide to purchase it, and that includes the property lines. What do you need to know about property lines, and why are they so important?

How Are Property Lines Drawn?

While property lines are the borders that separate one property from another, they are also legal boundaries. Essentially, property lines determine what you do and do not own. There is a chance that someone may place a fence directly on top of the property line, but there is no guarantee that the fence is in the right place. Usually, property lines are determined and drawn by a surveyor who takes a look at the land, refers to any deeds or records related to the properties involved, and lets you know exactly where the boundaries are located.

How Can You Find Your Property Lines?

When you are looking at a potential property, finding your property lines should be close to the top of your list. You are purchasing not only the building but the land around it, and you need to know where your land will end. This could determine potential projects you have in mind for the property. If you are building a house, there might be stakes in the ground clearly showing your property lines. If you are purchasing an existing property, you may have to pull legal records to figure out where the boundaries are located.

How Property Lines Play A Role After The Purchase

There are several situations where property lines could play a role after you purchase the property. For example, if you need to trim a tree, or if a tree falls on the property line, you may need to know who is responsible for getting rid of it. Furthermore, if there is a home improvement project coming up, you need to know the limits of that construction project.

Know Your Property Lines

You need to know the boundaries of any property you are thinking of purchasing. An experienced real estate professional will understand how to look up documentation and let you know exactly where the property lines are before you move forward with the purchase.

23

Aug

By First Rate Financial Group

Mortgage

3 Ways To Avoid Mortgage Insurance

3 Ways to Avoid Mortgage Insurance When you are buying a home, you may run into a number of hurdles to complete the purchase. One of the items that you may be asked to purchase is called private mortgage insurance, often shortened to PMI. This is a unique insurance policy that your lender, such as the credit union or bank, may ask you to buy in order to protect themselves. In this insurance policy, the bank protects themselves against losing money if you end up defaulting on your loan.

Unfortunately, if you are asked to purchase PMI, this will increase your monthly mortgage payment. Therefore, most people try to avoid it. Fortunately, there are a few ways to do this.

Increase the Size of Your Down Payment

Typically, the lender will ask you to purchase PMI if your loan to value ratio is off. In most cases, the lender will ask you to buy PMI if you put down less than 20 percent. It is important to remember that this is still handled on an individual case-by-case basis and each lender handles this differently.

Invest in a Piggyback Mortgage

Another option to avoid PMI is to invest in something called a piggyback mortgage. In this case, you are splitting your mortgage into two policies. For example, if you put down 10 percent, you would need to take out a mortgage for the other 90 percent.

When you take out a piggyback mortgage, you split this 90 percent loan into one mortgage for 80 percent and the other for 10 percent. The drawback of this policy is that the second loan might have a higher interest rate than the first. This can help you avoid having to take out PMI.

Try Building the PMI Into the Loan

Finally, the last option is to roll them into the cost of the loan. In this case, the lender avoids asking you to purchase PMI and instead charges you a little bit more money for the loan. You won’t have a section on your bill for “private mortgage insurance” but you will have a slightly higher monthly payment anyways. Remember that you can refinance to a lower rate later, saving some money; however, it might be harder to eliminate PMI.

Avoiding Mortgage Insurance

These are a few ways that you can avoid purchasing PMI. This will help you keep your monthly payments low. As always, speak with your trusted mortgage professional for personal advice on your specific situation.

22

Aug

By First Rate Financial Group

Mortgage

Reasons You Need an Insurance Binder and How to Get One

Reasons You Need an Insurance Binder and How to Get One An insurance binder for mortgage loans is a document that provides proof of insurance coverage for a property that is being financed with a mortgage loan. Mortgage lenders require borrowers to have insurance coverage on their property to protect their investment in case of damage or loss.

When a borrower applies for a mortgage loan, the lender typically requires proof of insurance coverage before they will approve the loan. An insurance binder is a document issued by the insurance company that provides temporary proof of insurance coverage until the official insurance policy is issued.

The insurance binder for mortgage loans will typically include information about the property being insured, the coverage limits, and the effective date of the policy. The lender will review the insurance binder to ensure that it meets their requirements for coverage and will usually require the borrower to maintain insurance coverage for the duration of the mortgage loan.

Here are some reasons why you may need an insurance binder:

Closing on a new home: If you are closing on a new home, your lender may require an insurance binder to ensure that the property is adequately insured.

Purchasing a new car: If you are purchasing a new car, you may need an insurance binder to show proof of insurance coverage before you can take possession of the vehicle.

Starting a new business: If you are starting a new business, you may need an insurance binder to show proof of coverage for liability, property damage, or other types of insurance coverage.

Renting a property: If you are renting a property, your landlord may require an insurance binder to ensure that you have renters’ insurance coverage.

To get an insurance binder, you will need to contact your insurance agent or insurance company. They will typically require you to provide some basic information, such as your name, address, and the type of coverage you need. Once they have this information, they will issue a temporary insurance binder that will provide proof of coverage until the official insurance policy documents are issued.

It is important for borrowers to understand that an insurance binder is a temporary document and should not be used as a replacement for the official insurance policy. It is also important to review the insurance policy carefully to ensure that it provides the necessary coverage for the property being insured.