Credit Score Percentaje: Excellent: 6.5% Good: 6.75% Fair: 6.99% Poor: 7.25%
Estimated Taxes & Insurance: Property taxes are usually estimated at around 1.2% of the home’s value, though the rate depends on the property’s location. Annual homeowners insurance averages approximately 0.35% of the home’s value, but costs can vary depending on the insurance provider. Your loan specialist can provide a more precise estimate for your specific area.
PMI (Private Mortgage Insurance): PMI is a type of insurance that protects the lender in case the borrower defaults on the loan. It is added to the borrower’s monthly mortgage payment. Once the borrower has built up equity equal to 20% of the home’s value, PMI can typically be removed from the monthly payment.