 DORMANTROOT
Joined: 26 Nov 2008
Posts: 2
2.54 Dollars($)
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steve2
Joined: 23 Nov 2008
Posts: 17
Location: Pensacola, FL
8.17 Dollars($)
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Posted: Wed Nov 26, 2008 12:57 pm Post subject:
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Dormantroot,
1) To have your PMI cancelled, you will have to bring your balance down to 78% or less of the lower of your purchase price or appraised value at the time of closing. Example: If your purchase price is $200,000 and the appraised value is $205,000 at the time of closing, you will have to pay the balance down to $156,000 for the PMI to automatically be removed.
2) A biweeky payment is nothing more than adding an additional payment per year towards your principal. To achieve the same result, take your monthly payment, divide it by 12, add that figure to your monthly mortgage payment every month and it will reduce your term from 30 years to about 23.5 years. Never pay someone a fee to do bi-weekly payments.
3) Yes, PMI can be deducted on your taxes for your primary residence, but consult your accountant for details on qualifying and the continuance in the future.
4) An escrow account is nothing more than collecting your taxes and insurance up front so that it can be divided out into your monthly payment for budgeting purposes. The laws vary depending on what state you are in, but in Florida, taxes become payable in November, and are not past due until April. Setting up your escrow account allows you to set aside this money (1/12th at a time) each month until the bill comes due the following year. It is common to collect for 12 months of insurance + 2 months reserves, and 2 to 4 months of property taxes.
I hope this was helpful.
"http://www.SteveRussellOnline.com/blog"
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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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