PMI in my Mortgage Explained?
If you put less than 20% down to purchaser your home with a conventional loan then you are paying PMI each month. PMI is an acronym for Private Mortgage Insurance and it protects the lender if you stop making payments. A lender has a higher risk on low down payment loans and they require you to pay for the insurance (PMI) to help mitigate their risk. What’s the cost? Good credit and more money down helps get a lower rate but count on between .2% and 2% of your loan value per year. Fear not, you don’t have to pay it forever! Once you’ve reached 20% equity in the house you can request it be removed. Nowadays PMI is often taken off automatically once you’ve reached 22% equity based upon the original loan amortization schedule. Aside from natural appreciation, making significant improvements to the home can get you to 20% equity more quickly. You’ll need an appraisal to verify the value. Maybe you’ll consider an FHA or VA loan instead to get out of the PMI? Well, you won’t pay PMI but you’ll still need to compensate the lender for the risk. FHA’s insurance is called MIP which stands for Mortgage Insurance Premium. What about VA? Theirs is an upfront Funding Fee. So, you’ll pay either direction you go. If you are looking to purchase a home in the Dayton, Ohio area, reach out to me and I’ll align you with the right lender.
Radon, What is it?
Radon is a radioactive gas originating from naturally occurring uranium in the ground. As uranium decays it emits radon gas into the atmosphere and in your home levels can sometimes build up to the point where the EPA recommends mitigation. No level of radon is considered totally safe but if the concentration gets to 4 picocuries per liter or greater it’s time to have a mitigation system installed. Every deal is different, but this is something we typically ask the seller to pay for during the inspection phase. This usually costs about 1000.00 and takes a day to install. It’s a very simple system but effective – I’ve never seen a case where a home could not be mitigated below the EPA action level. It consists of a 3 inch pvc pipe that is installed below the slab surface and runs up above the roof line. A fan is installed on this pipe that creates a suction under the slab pulling the radon out rather than it making its way into the home. Feel free to reach out with any home ownership questions that come to mind!
Cracked Chimney Crown: A Hidden Source of Water Entry
The crown is a thin layer of cement that seals the top of the chimney to the flue. It is poured with a slope so water will roll off instead of just sitting. Because it is thin, it tends to crack over time. A cracked or deteriorated chimney crown can allow water inside the chimney. It often goes unnoticed for a long period of time simply because we generally never get to see the top of our chimney. The freeze/thaw cycles here in Dayton Ohio contribute to broken and spalling bricks. Left unchecked water can eventually make its way into the framing of the home and create mold and rot framing members. We often find damaged crowns during our real estate inspections. If there are minor cracks and chips the repair is typically just using a high quality caulk to seal things up. If the damage is more extensive then a brick mason can chip off the old crown and pour a new one. Costs range widely depending mostly on how difficult it is to reach the crown. Typically, you are looking at $500.00 or more for this repair. Interested in learning more, just reach out!
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