My friend Claudia of (@lifeofcloud.net) shared this and I am happy to get some more clarification about this topic.
With all the buzz going on about the new legislation I wanted to take some time to break it down for everyone and if there are further questions, please feel free to shoot me an email about it. I’ve decided to bold the important parts for those that like to skim and get the gist of what’s going on.
This one is relatively easy and has been around for a bit but here’s the refresher. If you have to borrow more than 79% of the total value of the house, you have to buy default insurance for the mortgage. Essentially, it’s a safe measure against default to make sure that those who have small down payments, should they no longer be able to pay it back, the lender (ie bank, credit union, etc.) gets compensated for the full amount lent out if they default. Usually we’re talking…
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