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6 Facts about Private Mortgage Insurance

Private mortgage insurance (PMI) is a type of insurance that most borrowers are required to pay if they are not making a down payment of 20% or more. While you may think you understand the concept of insurance, if you have never bought a house before, you may not realize that PMI is different than most types of insurance. Here are five PMI facts every buyer should know: 1. PMI protects the lender, not the buyer. Most insurance is something you buy to protect yourself – your car, your home, your health, etc. PMI is something you pay for but it actually protects the lender, not ...

October 3rd, 2018 | Conventional Loans, 6 Facts about Private Mortgage Insurance

Should I Roll My Student Loans into My Mortgage?

Americans owe more today in student loans than ever before and student debt is continuing to rise. As these borrowers start into their careers and become homeowners, they may have the opportunity to consolidate their student loan debts with their home loan. If this sounds intriguing to you, here’s what you need to know before talking to your lender: How Does Consolidation Work? If you have enough equity in your home, you can refinance to pull cash out and pay off all your student loans. This means that both debts will now all be paid off together through your monthly mortgage bill....

September 26th, 2018 | Mortgage, Debt Consolidation , Should I Roll My Student Loans into My Mortgage?

Should I Make a Biweekly Mortgage Payment?

Many homeowners are eager to pay off or pay down their mortgages in order to save themselves money in interest charges. Many lenders have even anticipated this situation by offering buyers a bi-weekly payment program. What is a Bi-Weekly Mortgage Payment? Most mortgages are paid once a month, making 12 payments every year. With a bi-weekly payment schedule, the monthly mortgage amount is split into two and paid every two weeks instead. Since there are 52 weeks in a year, this results in 26 half- payments annually, totaling 13 whole payments. This means borrowers basically pay one extra m...

September 19th, 2018 | First-time Homebuyers, Purchasing a Home, Mortgage, Should I Make a Biweekly Mortgage Payment?

What is a Piggyback Mortgage?

In order to achieve the dream of homeownership, many buyers look for creative financing to aid them in their quest. One such option is a piggyback mortgage, which actually involves taking out two separate loans to make homeownership more affordable. These loans can be very helpful, but borrowers must know the risks in order to be succesful. Piggyback Definition Here’s how a piggyback mortgage works. You take out a traditional home loan for 80% of the home purchase price. You put down 10% of your own cash as a downpayment. Then in order to cover the remaining 10%, you take out a sec...

September 12th, 2018 | First-time Homebuyers, Conventional Loans, Preapproval, Purchasing a Home, What is a Piggyback Mortgage?

The Ins and Outs of a Home Equity Line of Credit

Homeowners have a great source of funding available to them that others don’t: their house! If homeowners have a significant amount of equity in their home or especially if their mortgage is completely paid off, they can make great financial use of their house by taking out a home equity line of credit (HELOC). HELOCs are loans in the form of revolving credit lines that are secured by a home. They work a lot like a credit card – you have a certain limit, you can draw out money as needed, and you only make payments after you have pulled out money from the account. Funds from a ho...

September 5th, 2018 | Credit, The Ins and Outs of a Home Equity Line of Credit

Home Buying Help: What is Escrow?

Buying a home is often the biggest purchase you make in your life. With all that money on the line, buyers and sellers AND lenders need a safe and secure way to make the transaction.  In order to make sure the home sale and mortgage funds transfer take place properly, your lender will open an escrow account for you. What is an Escrow Account? An escrow account is essentially a holding spot for all assets involved in a home sale, run by a third party who secures them until all terms and conditions of the sale are carried out. You as a buyer do not want to hand over hundreds of t...

August 29th, 2018 | Purchasing a Home, Home Buying Help: What is Escrow?

American Mortgage Solutions

10602 Timberwood Circle, Suite 3,
Louisville, Kentucky 40223
Phone: 502-327-9770
Fax: 502-327-9119
NMLS# 1364 / MB73346

We are licensed in: Kentucky, Indiana and Florida.