Amber Hutton | Mortgage Advisor | Axia Home Loans | NMLS #1756546
DO I need a large down payment to purchase a home?
To purchase a home in Minnesota there are more than one option for your down payment. Each program has its own regulations, but it is a Myth that you must have a large downpayment to buy a house.
What is PMI?
PMI stands for Private Mortgage Insurance. It is an insurance that is part of the borrowers monthly mortgage payment if the loan to value amount is less than 80%. This monthly payment is in place to protect the LENDER in case you the borrower default on the mortgage. On Conventional Loans the PMI can be dropped at 80% and will automatically drop at 78%. On FHA loans that were originated after June 3, 2013 PMI is on the loan for the life of the loan.
Should I pay off my debt by the largest percentage Rate first?
All though it seems that paying your debts off by the largest interest rate first, it actually in the long run does not save you that much. However, the psychological impact of eliminated your debts in order of the smallest value amount first has a much higher success rate of completion than doing it in order of the highest interest rate. I recommend you do the Debt Snowball approach with your debts that Dave Ramsey recommends.
DO i NEED A FINANCIAL aDVISOR?
If you want to build wealth the answer is YES! However, if you are currently not saving money, and/or have access to a life insurance policy elsewhere then the answer is NO. I would only recommend you have a Financial Advisor if you realistically can save money each month above and beyond what you have in your current Savings and Checking accounts. The returns that your money can make at an investment firm are much larger than what you can make at your traditional bank. Traditional banks are not built for long term interest growth. As with anything, a good professional will be well worth their fees if that is your concern. Seek out a referral for a good Financial Advisor who has a proven record of high touch customer service.