Amber Hutton | Mortgage Advisor | Axia Home Loans | NMLS #1756546
DO I need 20% down to purchase a home?
To purchase a home in Minnesota there are more than one option for your down payment. There are programs as low as $1,000 down, 3% down, 5%, 10% down, 15% down and 20%. Each program has its own regulations, but it is a Myth that you must have 20% down to purchase a home.
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 % 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.