Mortgage Insurance

Research federal laws regarding private mortgage insurance Understanding your rights as the purchaser of a mortgage when it comes to private mortgage insurance will save you money over the life of your loan. PMI is automatically removed when your principle balance is within the limits of the law, so spending money on an appraisal along the way could end PMI sooner.

I recommend:  The Federal Trade Commission and The Money Alert are great resources for easy to understand information on PMI.

Shop a variety of lenders before determining which mortgage company is right for you Most people go straight to their bank when thinking about a mortgage. Although a bank is a good option, mortgage companies want your business and are ready to compete if they know you're a smart shopper.

I recommend:  Rebuild.com and Lending Tree offer fast and easy mortgage comparison shopping. These companies specialize in one-stop mortgage shopping where banks and lenders compete for your business and you can see mortgage comparisons side by side.

Decide if you need mortgage life insurance Mortgage life insurance is insurance that pays the balance of your mortgage in the event of your death or the death of your spouse. However, if you have adequate whole life or variable life insurance, you may not need the additional coverage.

I recommend:  LifeInsurance.com and Advantage Quotes provide not only great information about mortgage life insurance but free quotes and a variety of insurance products for many of your insurance needs.

Find out what you can do to get the best mortgage rates Financial decisions you make now can determine what kind of mortgage interest rate you qualify for. Cleaning up your credit history, paying off a few debts and getting more into your savings each month makes you a candidate for a better interest rate. This will effect how much you borrow, how long you have to pay it off and may totally eliminate the need for PMI.

I recommend:  Buyers Ed. and HSBC North America Military Financial Education Center have great check lists to help you prepare to apply for a mortgage. Each resource gives step by step instructions on how to clean up your credit history, get all your documents in order and qualify for the best rate for your particular situation.