Buyers- Private Mortgage Insurance-heads up!

Buyers: when shopping for a loan, remember private mortgage insurance (PMI) may be required depending on your ability to bring a large enough down payment to the table. PMI gives lenders extra protection should you default on your loan responsibilities. It is just what it says, mortgage insurance. If you are strong enough to carry 20% down, you'll avoid it. Lenders do offer 80/20 loans. Add it up, they'll finance that 20% in the form of a second loan to the first. So you actually take out two loans instead of one. As of January 1, 2007, PMI fees are tax deductible. The government wants to continue to make home ownership attractive, hence the tax deduction. For the best info, go to the San Francisco Federal Reserve to get a real easy read on what this means for you in the purchasing process. The site has lots of great information credit health, credit repair, etc. Check it out-it'll make you smarter!