Lisa Corr, Olde Town Realty | Haverhill, MA Real Estate


You may have heard of private mortgage insurance, also known as PMI, but you’re probably not sure what exactly it is. If your down payment is less than 20% of the purchase price of the home, then you’ll need to pay for this additional insurance in order to secure a loan for the home. This type of policy protects the lender if you end up in a foreclosure situation. This way, the lender is assured that they will not lose money. 


Private mortgage insurance is also required if you refinance your home when it has accrued to less than 20% equity. Again, this protects the lender from losing money if the loan is defaulted on. 


Fees


The fees involved with private mortgage insurance can range based on a few factors including the actual size of the down payment and your credit score. You can expect the cost of the insurance to be somewhere between 0.3% and 1.5% of the loan amount per year. The PMI premiums are tax deductible some years and other years they are not. It really all depends upon the state of the government and what they have enacted for the particular fiscal year. Private mortgage insurance premiums can be paid either monthly or with a large payment upfront, although most policies will require the borrower to pay on a monthly basis.    


This Insurance Can Be Canceled


The lender will automatically cancel your PMI once the loan drops down to 78% of the home’s value. For this reason, you’ll want to keep track of your payments in order to see how far away you are from shedding this monthly fee. When your loan is paid down to 80% of the home’s original value, you have the right to ask your lender to discontinue to insurance premium payments.


What Is The Loan-To-Value Ratio?


This ratio is the amount of mortgage debt in the form a percentage based on how much the home is worth. It’s calculated by the following formula:


Amount owed on the mortgage/Appraised value


This is an important factor when it comes to matters of PMI insurance, as it’s how the required loan payment percentages are calculated. If a home is worth $100,000 and $80,000 is still owed on the home, the loan-to-value ratio is 80 percent. This means the borrower can request the insurance be cancelled.      


FHA Loans Have Different Requirements


If you secure an FHA loan, they require the payment of PMI premiums for the entire life of the loan. You can’t exactly cancel these insurance payments but you can refinance the loan in order get rid of the insurance. This means that you will no longer have an FHA loan.           


Private mortgage insurance can be a nuisance, however as a first-time homebuyer with little capital, the fees may be worth it when you’re able to secure your first home.


As a home seller, you likely want to get rid of your residence as quickly as possible. However, there is no reason to underprice your residence to speed up the home selling process.

Ultimately, underpricing a home may create a number of problems. If you fail to consider how much your house is worth, you risk receiving offers for far less than your residence's actual value. As a result, you may fail to maximize the value of your home.

So what does it take to ensure you can establish the right price for your residence? Here are three tips to help home sellers do just that.

1. Employ a Real Estate Agent.

A real estate agent possesses the skills and know-how to help you navigate any real estate market. He or she will be able to offer a wide assortment of housing market data and insights, and as such, provide recommendations to ensure you can set a fair price for your house.

Furthermore, a real estate agent will be able to help you establish the right price for your residence in a buyer's or seller's market – even if you are trying to move out of your home soon. This real estate professional will learn about your needs and explore a variety of options to guarantee you won't have to underprice your home to sell it quickly.

2. Become Familiar with Comparable Homes in Your Area.

Many homes are available in cities and towns across the United States, and home sellers who assess the prices of comparable homes nearby should have no trouble establishing the right price for a residence.

Review real estate listings for houses that currently are available, along with listings for homes that sold recently in your city or town. This will help you understand how your house stacks up against other residences in your area so you can price your home based on the current real estate market.

3. Set Realistic Expectations Throughout the Home Selling Process.

There is no need to panic if your home does not receive multiple offers after the first open house. Instead, try to remain calm, cool and collected, and you can avoid the temptation to lower the price of your house to stir up interest among homebuyers.

Before you add your home to the real estate market, set realistic expectations for how much you would like to receive for your residence and how quickly you need to sell your property. This will enable you to have a home selling plan in place and ensure you are prepared for any challenges that come your way.

A real estate agent can help you establish realistic expectations for the home selling process as well. This professional will allow you to stay up to date about home offers, respond to your home selling concerns and questions and streamline the process of maximizing the value of your residence.

Use the aforementioned tips, and you can speed up the home selling process without sacrificing the value of your house.


This Single-Family in Haverhill, MA recently sold for $369,000. This Colonial style home was sold by Lisa M. Corr - Olde Town Realty.


179 Concord St, Haverhill, MA 01830

Single-Family

$365,000
Price
$369,000
Sale Price

8
Rooms
3
Beds
2
Baths
Impeccable Colonial House with beautiful Curb Appeal. The City has this home listed as a 3 bedroom. 3rd bedroom has been turned into a den. Beautiful hardwood floors in living room, dining room and bedrooms. Bedrooms have cathedral ceilings and each one leads out to front balcony. This home has 2 kitchens, great for entertaining. Lower level is finished with bar area, kitchen and living space. Also home has a Security System and irrigation system, work shop area in lower level. Central Vac, Central Air and Backup Generator. Brand New Hot Water Heater. Enjoy Your Nicely landscaped yard from your deck. You won't be disappointed, Nothing to do but unpack

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2 S St, Haverhill, MA 01835

Bradford

Single-Family

$319,900
Price

7
Rooms
3
Beds
1/1
Full/Half Baths
Don't miss your chance to live in the Ward Hill lneighbhood at an incredible price. A great opportunity to own a 7 rooms, 3 Bedrooms, 1.5 bath. Kitchen has be updated with newer cabinets, granite. Nice size family room with a fireplace. Living room and dining room have hardwood floors, Walk up attic. First showing open house Saturday the 24th at 11:00-12:30
Open House
No scheduled Open Houses

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This Single-Family in Haverhill, MA recently sold for $225,000. This Split Entry style home was sold by Lisa M. Corr - Olde Town Realty.


6 Ivy St, Haverhill, MA 01835

Single-Family

$256,000
Price
$225,000
Sale Price

6
Rooms
3
Beds
1/1
Full/Half Baths
Owner occupants here is your chance to save thousands! This affordable home has so much to offer for the price. Gleaming hardwood floors, updated kitchen with stainless steel appliances. Bright, sunny generous size rooms with great closet space. Great Bradford location that is conveniently located near schools, highways and shopping. Basement unfinished and offers great potential. Sliding glass doors leads to back/side yard that would be perfect for entertaining. Tons of potential with a little TLC! Will not last at this great price! HUD Home. Sold "AS IS" by elec. bid onlyProp avail 3-29-17. Bids due by 4-02-17 11:59 PM Central Time then daily until sold. FHA Case #251-387559. Uninsured. Eligible for FHA 203K. For Prop conditions, Forms, Discl & Avail please visit www.HUDHomestore.com. For additional forms, updates, step-by-step videos & free photo list, please visit www.BLBResources.com.BLB Resources makes no warranty as to condition of property. Buyer to verify all info.

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