Whenever a person needs to finance a house the mortgage is a way of financing with a significant portion of the house value as a down payment. For those who cannot pay a large down payment as high as 20%, the lenders feel reluctant to allow loans to such individuals because borrowers may not be able to pay mortgages. To secure against the risk of default by the borrowers, the lenders get private mortgage insurance to safeguard the default risk.
The amount of premium payable by the lender is normally 0.5% to 1.0% of the house value. If a house is worth $250,000, the amount of yearly installment will be $2,500 or $208.33 per month. The lender will shift this cost to the borrower in the shape of higher mortgage payments.
1. Using Your Personal Financial Plan Sheet 22, compare the
1. Jamie Lee is considering a used vehicle, but cannot
Newlyweds Jamie Lee and Ross have had several milestones in the past
Troy has a credit card that charges 18% on outstanding balances
Nick and Nora are married and have three children in college.
Gene and Dixie, husband and wife (ages 35 and 32
How is the market for a stock created? How do brokerage
1. What is the benefit to Jamie Lee and Ross investing
Ted Riley owns a 2012 Lexus worth $40,000.
Julie wants to open a bank account with $75. Julie
