The Mortgage Coach T


he days are long and hot, yet the eve- nings are cool and pleasant.


mer is here! Sonoma


Sum- The


County


Fair has come to town, showcasing our agricultural and rural roots. The local seasonal harvest fills our farmer’s mar- kets, and then our pantries. One of my favorite parts of the Sonoma County Fair is the horse races. It is like a lottery pick every 30 minutes. I have never left the track a rich man, but never left with more than I was willing to lose. The long shots are far and few between, and the favorites always come in.


Buying a home is always


a good bet. Owning a home gives you a foundation to ac-


Upbeat Home & Real Estate Buying with less than 20% down!


by Barry O'Meara of Santa Rosa, CA • barryo@stearns.com


cumulate wealth - not to men- tion a roof over your head. Paying your mortgage is a built-in savings plan. As you pay down your princi- pal, your home’s value


appreciates,


and you accumu- late equity.


Whether trying to leverage buying power, or just trying to get into your first home, Mort- gage Insurance provides that opportunity. When financing, Mortgage Insurance (MI) is always required if you have less than 20% equity.


Eq-


uity is the difference between what your home is appraised for and what is still owed. MI is commonly referred to as PMI, which stands for Pri- vate Mortgage Insurance. MI has been beneficial in helping


many homeowners get into their first home. Mortgage Insurance insures the lender. You pay the pre- miums, but for the benefit of the lender. The premiums are based on credit score and your Loan-to-Value (LTV). A low down payment combined with a low credit score, will end up with a high premium. Good credit will give you a lower the premium. If you do have a low credit score, you can always compare monthly pay- ments using FHA and conven- tional financing. Using conventional financ- ing, you can have MI removed once you have 78% LTV.


If


you are trying to remove the MI with less than two years after purchase, lenders will require you have 75% LTV. Either pay down your princi- pal, or ask to have your home


re-appraised. With FHA you have the MI for the life of the loan.


There is also an option to


buy out the MI. This is where you make a single premium payment, that will eliminate the monthly premium.


The


premium is determined by your LTV and credit score. Another reason to keep your credit score high.


Another option is Lender Paid Mortgage Insurance (LPMI).


lender covers the premium with a higher interest


This is where the rate.


Loans are priced using a ma- trix, with Yield Spread Pre- mium (YSP) from tier to tier. The premium is paid to the lender, and the borrower pays a higher interest rate. The lender will buy out your MI with the premium.


Using Mortgage Insurance means you don’t have to come in with 20% to buy a home. This allows leverage to get a roof over your head, while you build equity and grow wealth. Don’t go for the long- shots! Place your bets on the favorite - buying your home!


Weird Facts & Fun Trivia - 4 AUGUST FACTS:


1965 - The Sound of Music was released, starring Julie Andrews.


1996 - The Price Is Right celebrated its 25th


anniversary special on CBS.


The first commercial ball- point pens were sold in 1945 for $12.00 and sold by László Bíró. John J. Loud sort-of invented them in 1888, but they didn't work well enough for writing.


1942 ~ Actress Hedy Lamarr and composer George Antheil received a patent (#2,292,387) for a Frequency-hopping com- munication system which later became the basis for modern technologies like wireless telephones and Wi-Fi.


1609 - Galileo Galilei demonstrated his first telescope to Venetian lawmakers.


Te secret of success is to be in harmony with existence, to be always calm to let each wave of life wash us a little farther up the shore.


Cyril Connolly Pg 26 • AUGUST 2019 • UPBEAT TIMES, INC. She laughs at everything you say. Why? Because she has fine teeth. ~ Benjamin Franklin


B. O’Meara


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32