Tag: homeownership

This document from the Timeshare Council provides a detailed analysis of options available to timeshare owners who are unable to make their payments: http://timesharecouncil.net/selling/walk-away-from-a-timeshare/.

Bottom line: In good times and bad, timeshare owners who want “out” generally need to sell their timeshare for less than its original purchase price. As the article notes, selling a timeshare is tough, and you will be lucky if you sell it for half of what you bought it for. Perhaps you may want …

Regarding an individual homeowner’s financial ratios in order to qualify for a mortgage or to refinance, the same criteria apply as for loans for any single family residence. Lenders generally like to see monthly PITI (principal, interest, property taxes, and insurance) payments no higher than 25% to 29% of a loan applicant’s monthly gross income. This is called a front-end ratio. In addition, lenders generally require monthly payments for PITI and all consumer debts (e.g., loans and credit cards) to …

PMI is extra insurance that lenders require from most home buyers who obtain loans that are more than 80 percent of their new home’s value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI. PMI premiums, which protect lenders against loss if borrowers stop making their mortgage payments, typically cost between 0.5% and 1% of the mortgage loan amount.

For example, if you borrow $150,000 and the PMI premium rate is …