Lenders
usually expect that you have at least
five percent equity in the house's
appraised value. Also, you can expect
to pay closing costs, which are often
three to four percent of the loan
amount. If you retain five to twenty
percent equity in your home, the
lender will require you to pay for
private mortgage insurance. If you
have over twenty percent equity, you
will not be required to pay for
private mortgage insurance.
finance
You
may finance the closing costs into the
loan amount to avoid paying cash to
obtain the loan, as long as the total
loan amount complies with the lenders
equity requirements.
Buying insurance is common sense. It is protection against the risks that can confront you every day, like a simple traffic accident, or rare occurrences, like your home or office burning to the ground. You can buy health insurance quotes for the same reason you buy other kinds of insurance, to protect yourself financially.
