Frequently Asked Mortgage Questions
Please see our detailed answer on this subject here: https://goldcoastmortgage.com/mortgage-calculator/
We have made the recent updates to this questions and encourage you to read the full story here: https://goldcoastmortgage.com/adjustable-rate-mortgage/
A bridge loan is a 2nd position mortgage on your outbound (former) primary residence. It is designed to extract equity from the departure residence to be used as a down-payment on the destination (future) primary residence. Read our blog post on Bridge Loans.
For an experienced Team (mortgage, realtor or broker, attorney and committed buyer) a transaction that needs to close (sell) and buy (purchase) on the same day should not be feared. Where the bog-downs happen is if you are using an out-of-state mortgage source, a national lender, or an online lender and they believe this is standard operating procedure. Or a realtor that also has a day job, or an attorney that is generalist and spaces weeks between real estate work. All parties need to be hyper-focused and attentive to all the moving parts, which would place this type of transaction near the top of the complexity meter. Read our blog post on Simultaneous Closings
This is in the top 5 most common questions we are asked. First up you need to ascertain if you have a conventional mortgage or a FHA mortgage (VA mortgage’s, do not have monthly mortgage insurance). USDA and MassHousing require a separate explanation. Let’s start with a conventional mortgage (non-government mortgage). The FHA explanation of its own MIP is another chapter that will come later. You pay mortgage insurance against your potential default. It is an insurance. that’s the “I” in the acronym. While you derive a benefit from PMI (your ability to buy a home without a 20% down-payment) the insurance isn’t for your protection. This is important to think about. You’re not PMI’s customer the lender is, even though you pay for it. Since there are several PMI providers the removal rules will vary between PMI companies. The 3 techniques that will drop PMI are listed in our article Dropping PMI.