When you are buying a home, you may run into a number of hurdles to complete the purchase. One of the items that you may be asked to purchase is called private mortgage insurance, often shortened to PMI. This is a unique insurance policy that your lender, such as the credit union or bank, may ask you to buy in order to protect themselves. In this insurance policy, the bank protects themselves against losing money if you end up defaulting on your loan.

Unfortunately, if you are asked to purchase PMI, this will increase your monthly mortgage payment. Therefore, most people try to avoid it. Fortunately, there are a few ways to do this.

Increase the Size of Your Down Payment

Typically, the lender will ask you to purchase PMI if your loan to value ratio is off. In most cases, the lender will ask you to buy PMI if you put down less than 20 percent. It is important to remember that this is still handled on an individual case-by-case basis and each lender handles this differently. 

Invest in a Piggyback Mortgage

Another option to avoid PMI is to invest in something called a piggyback mortgage. In this case, you are splitting your mortgage into two policies. For example, if you put down 10 percent, you would need to take out a mortgage for the other 90 percent.

When you take out a piggyback mortgage, you split this 90 percent loan into one mortgage for 80 percent and the other for 10 percent. The drawback of this policy is that the second loan might have a higher interest rate than the first. This can help you avoid having to take out PMI.

Try Building the PMI Into the Loan

Finally, the last option is to roll them into the cost of the loan. In this case, the lender avoids asking you to purchase PMI and instead charges you a little bit more money for the loan. You won’t have a section on your bill for “private mortgage insurance” but you will have a slightly higher monthly payment anyways. Remember that you can refinance to a lower rate later, saving some money; however, it might be harder to eliminate PMI.

Avoiding Mortgage Insurance

These are a few ways that you can avoid purchasing PMI. This will help you keep your monthly payments low. As always, speak with your trusted mortgage professional for personal advice on your specific situation.

Filed under: Real Estate by Julie Woodward
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Homeownership is a significant milestone that comes with a sense of security and pride. Your home is not just a place to live but also a valuable asset that needs protection. Homeowners insurance provides financial coverage for unexpected events and damage that may occur to your property.

Determining the right amount of coverage can be challenging, here are some of  the factors to consider when deciding how much homeowner’s insurance coverage you need.

Assessing the Value of Your Home: The first step in determining your coverage needs is to evaluate the value of your home. Consider the cost of rebuilding or repairing your house in the event of a total loss.

Understanding Different Coverage Types: Homeowners insurance typically consists of several types of coverage, including dwelling coverage, personal property coverage, liability coverage, and additional living expenses coverage. Each of these covers different aspects of your home and belongings. Understand the purpose and limits of each type to determine the appropriate amount of coverage you need for your specific circumstances.

Evaluating Personal Belongings: Take an inventory of your personal belongings and estimate their value. This includes furniture, appliances, electronics, clothing, and other valuable items. Ensure that your personal property coverage provides enough coverage to replace these items in case of theft, fire, or other covered perils.

Considering Liability Coverage: Liability coverage protects you in the event someone is injured on your property or you cause damage to someone else’s property. Evaluate your liability needs based on factors such as the size of your property, potential risks, and your personal circumstances.

Assessing Additional Living Expenses: In case your home becomes temporarily uninhabitable due to a covered loss, additional living expenses coverage helps cover the cost of alternative accommodations, meals, and other related expenses.

Reviewing Deductibles: A deductible is the amount you need to pay out of pocket before your insurance coverage kicks in. Higher deductibles typically result in lower insurance premiums, but you should choose a deductible amount that you can comfortably afford in the event of a claim.

Consult with an Insurance Professional: Determining the appropriate amount of coverage for your home can be complex. It’s advisable to consult with an experienced insurance professional who can assess your unique needs, guide you through the process, and recommend the right coverage options based on your specific circumstances.

Choosing the right amount of homeowners insurance coverage is crucial for protecting your home, personal belongings, and financial well-being. Assess the value of your home, understand the different coverage types, evaluate your personal belongings, consider liability coverage and additional living expenses, review deductibles, and consult with an insurance professional to ensure you have adequate coverage. By taking these steps, you can enjoy peace of mind knowing that you are well-protected in case of unexpected events or damage to your home.

Filed under: Real Estate by Julie Woodward
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A land survey is an essential tool that is used to determine the exact boundaries of a piece of land or property. It is often required when buying, selling, or dividing land, and is also important for resolving property line disputes.

Process: The process of land surveying typically involves a licensed surveyor visiting the property to take precise measurements and create a detailed map or plan of the land. This may include identifying any physical features of the property, such as trees, buildings, or natural landmarks, as well as any easements or encroachments.

Types: There are several different types of land surveys, each with its own specific purpose. For example, a boundary survey is used to establish property lines, while a topographic survey is used to map the physical features of the land. Other types of surveys include ALTA/NSPS surveys, subdivision surveys, and construction surveys. It is important to select the appropriate type of survey based on the specific needs of your project or property.

Land Surveys Can Be Used For Insurance Purposes

Land surveys can be used for insurance purposes. A land survey can provide valuable information about the physical characteristics of a property, such as the location of buildings, trees, and other features. This information can be used by insurance companies to assess the risk of insuring the property and to determine appropriate coverage and premiums.

For example, if a property is located in a flood zone, a land survey can identify the exact location and elevation of the property, as well as any nearby bodies of water or drainage patterns. This information can be used by insurance companies to assess the risk of flooding and to determine appropriate flood insurance coverage.

Similarly, if a property is located in an area prone to wildfires, a land survey can identify the location of any vegetation, structures, or other features that may increase the risk of fire damage. This information can be used by insurance companies to assess the risk of fire and to determine appropriate coverage and premiums.

Does a fence help a land survey?

Yes, a fence can help a land survey by providing a physical marker of the property boundary. A land surveyor can use the fence to determine the location of the property line and ensure that the fence is placed within the boundaries of the property. This can be particularly useful in situations where the property line is not clearly defined or where there may be disputes over the location of the boundary.

It is important to note that a fence alone is not sufficient to establish the legal boundary of a property. In order to accurately determine the property line, a land surveyor will need to conduct a thorough survey that considers all available evidence, including property records, physical markers, and other relevant factors. Additionally, it is possible for a fence to be installed in the wrong location, either intentionally or accidentally, which can result in boundary disputes and other legal issues. Therefore, while a fence can be a useful tool in a land survey, it should not be relied on exclusively to determine the property boundary.

Overall, a land survey can provide valuable information for many purposes and can help property owners make informed decisions about insurance coverage and risk management.

Filed under: Real Estate by Julie Woodward
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Title insurance is one of the few types of protection policies available to homebuyers and one that is often overlooked because of its optional nature.

Because title insurance is purchased simultaneously with the home, it can be very easy to forego when looked at alongside all the additional fees that are associated with purchasing property.

This is typicaly not advisable, as title insurance is one of the smartest forms of protection a homeowner can buy. Here are just three reasons why every purchaser should get title insurance.

It’s The Best Protection Against Fraud

Title insurance protects the owner of a home from any claim made against their property, whether or not they are responsible. These include unpaid mortgage balances on the home, an improper foreclosure or any form of real estate fraud perpetrated by the seller.

Fraud is more prevalent now than ever before and has started to gain momentum in real estate as well. Forgeries are easier to create in the electronic age and criminals take advantage of today’s ‘do-it-yourself’ attitude to sell property they don’t actually own to unsuspecting victims.

The Insurer Performs An Exhaustive Title Search

Countless records are now made public online for low one-time payments to access them. But does anybody really know what they should be looking for? Title insurers are experts at finding anything suspicious with a home and researching exhaustively to make sure everything about the transaction is legitimate.

And if it’s not, the insurance still covers the buyer for any losses incurred if they are ordered out of their new home should a claim be made against it. Then they will research the claim to make sure it isn’t a fraudulent one.

Title Insurance Is A One-Time Fee

Although it is a large fee, title insurance only needs to be paid for once. Unlike other insurance policies that are either monthly or annually, title insurance is a one-time fee that is acquired at the time of closing. Most mortgage lenders require that their title insurance policy is paid for by the borrower anyway, so it’s not a giant leap to take out your own policy the same time.

Title insurance will also protect against mortgage fraud or any unpaid mortgages the home already has. Although title insurance is strongly recommended, it is a good idea to speak with a professional about it so that any questions you have may be answered.

Filed under: Real Estate by Julie Woodward
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When you are going through the process of looking for a new home, you are probably focused on the sticker price of that home. Even though it is important to think about your down payment, your monthly mortgage payment, and the total amount of the loan, there are other expenses that you might need to cover as well. If you do not put down enough money, there is a chance that the lender could ask you to pay for something called private mortgage insurance. What is private mortgage insurance and how much do you have to pay? There are several important points that you should keep in mind.

Why You Might Purchase PMI

Private mortgage insurance is something that the lender may ask you to purchase as a way to reduce their risk. If you do not make a sizable down payment, then the lender is responsible for funding most of the cost of your home. If you end up defaulting on the cost of that loan, the lender will lose a major amount of money. With PMI, the lender will be able to get his or her money back in the event that you default. Even though the exact cost of PMI will vary, you should expect to pay somewhere between 0.5 percent and 2 percent of the loan. You might be able to ask the lender to check with multiple options to find the least expensive policy possible for you. Once the PMI policy is instituted, this is something that you will have to pay on top of your monthly mortgage payment.

Avoiding PMI Payments

Importantly, there are ways that you can avoid PMI. You might be able to avoid this insurance policy altogether if you are able to increase the size of your down payment. If you cannot do that, the PMI policy will usually be canceled when you reach a certain threshold in equity. This is something that you should negotiate with the lender before you sign on the dotted line. In some cases, the PMI policy as waved when you reach 10 percent of the loan amount paid back. Even though you should check with a professional accountant, PMI is likely tax-deductible, similar to mortgage insurance.

Filed under: Real Estate by Julie Woodward
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Many homeowners do not realize that the risk of a flood is a significant factor that plays a role in not only homeownership but also the closing process. Even though flooding is a major risk, many homeowners do not carry enough coverage. Without proper flood insurance, homeowners risk losing millions of dollars. Therefore, it is prudent for those who are looking for a home to factor flood insurance into their home search. This can streamline the closing process down the road.

Exploring Options For Flood Insurance

When homeowners think about flood insurance, they are often directed to the National Flood Insurance Program (NFIP). While this is one option, there are also private options available that could provide better prices and more favorable terms. Private options exist in all 50 states in addition to the Washington DC area. They can be used to satisfy the requirements of banks, credit unions, and lenders at the time of closing.

Calculate The Risk Of Flooding

While a flood can happen at any time, some homes are in riskier locations than others. Therefore, homeowners need to take a look at the individual risk of flooding at a specific property in which they might be interested. In some cases, homes might be located in high-risk areas where flood insurance still might not be required. Homeowners need to make sure that they understand the risk of flooding of a potential property and protect it accordingly. Homeowners’ insurance usually does not cover flood events, so a separate policy is typically needed.

The Requirements Of The Lender

There are some situations where homeowners might have their closing process delayed purely because they did not realize that the lender required flood insurance. During the preapproval process, it makes sense for homeowners to ask the lender if they require flood insurance. That way, homeowners will be able to factor the cost of flood insurance into the search process and expedite their closing later.

Invest In Quality Home Insurance

For many homeowners, their home is the most valuable investment they will ever make. Therefore, it has to be protected appropriately. This includes flood insurance. Check out flood insurance options ahead of time to streamline the closing process later.

Filed under: Real Estate by Julie Woodward
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For most people, their home is the most valuable investment they will ever make. Therefore, it needs to be protected. This is where homeowners’ insurance is critical. At the same time, buying the right amount of homeowners’ insurance can be a bit of a challenge.

A home that is underinsured leaves the homeowner vulnerable to situations involving fires, floods, and theft. On the other hand, nobody wants to throw away money unnecessarily by over-insuring the home. How can everyone purchase the right amount of homeowners’ insurance?

Review The Coverage Every Year

First, people’s needs are going to change from year to year. Therefore, everyone should review their policy annually. For example, actual cash value only reimburses someone based on the current condition of the home. For example, if a home was built ten years ago, the actual cash value will only provide someone with the depreciated value of the home and not the original value. While this might be enough at the beginning, it may not be enough ten years from now. Everyone has to make sure they purchase enough insurance to cover the cost of rebuilding the home, excluding the cost of the land.

Overlooking Valuables And Liability

Another common mistake that people make when it comes to homeowners’ insurance is overlooking issues such as valuables and liability. Most people have enough insurance for the structure of the home. Most people do not have enough insurance to cover liability claims and valuables. Liability claims might arise if someone gets hurt on the property and the homeowner gets sued. Valuables are important if the home burns down or if someone steals something from the home. All homeowners must have enough homeowners’ insurance to protect themselves against potential liability claims (such as someone slipping and falling in the home) and the loss of valuables (such as electronics and jewelry). Everyone has to make sure they document these valuables appropriately.

Purchase The Right Amount Of Homeowners’ Insurance

Make sure you include everything to purchase the right amount of homeowners’ insurance. Review current construction costs as part of the process. Finally, review the fine print of the homeowners’ insurance policy every year to avoid being underinsured or over-insured.

Filed under: Real Estate by Julie Woodward
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Whether you’re buying a Port Royal condo or a house in El Pescador, you’re going to have expenses associated with home ownership that you may not have had as a renter—and if you’re a first-time homebuyer, you’ll need to account for them so you don’t get in over your head.

Common Expenses Associated With Home Ownership

Most people look at what their monthly mortage payment will be and figure that owning is cheaper than renting—and in many cases, it truly is.
But there are a few other things you need to account for, including:

• Higher utility bills
• Homeowners association dues
• Maintenance
• Mortgage insurance premiums
• Property insurance
• Repairs
• Taxes

“Keep in mind property taxes and insurance have a tendency of going up every year,” says attorney Rafael Castellanos, president of Expert Title Insurance in New York. “Even if you can afford it now, ask yourself if you’ll be able to afford the increased costs later.”

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

• All-in-one mortgage calculator
• Free homebuyer handbook
• Free eBooks about buying a home (and more!)

You can also check out:

• Port Aransas homes for sale
• Port Aransas condos for sale
• Port Aransas lots for sale
• North Padre Island homes for sale
• North Padre Island condos for sale
• North Padre Island lots for sale
• Port Royal Condos
• Mayan Princess Condos
• Sandpiper Condos
• La Mirage Condos
• Sandcastle Condos
• Island Moorings Condos
• Aransas Princess Condos
• Coral Cay Condos
• Island Retreat Condos
• Clines Landing Condos

Filed under: Blog, Buying by Julie Woodward
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Insurance is protection against unexpected expenses and insurance policies are available for nearly any scenario you can envision — even your own ransom. But just because an insurance policy is available, that doesn’t mean you should buy it.

Some insurance policies give you good bang for the buck. Others are plain wasteful.

In this 3-minute segment from NBC’s The Today Show, you’ll hear of several common insurance policies and their relative merits to people of TX who purchase them.

For example, Americans will spend an estimated $450 million on pet insurance this year. Because of the policies’ restrictions and deductibles, though, it’s an insurance policy that rarely pays off. This is one reason why financial experts often recommend that you pass on purchasing pet insurance.

Within the segment, other reviewed insurance policies include :

• Mobile phone insurance
• Flight and travel insurance
• Extended warranties for electronics
• Umbrella policies
• Renters insurance

There’s also discussion about home warranties, and why you should avoid policies that last longer than one year.

Insurance should be an important part of your overall financial plan. However, the key is to have the proper policies in place, with an appropriate amount of coverage. Review your policies annually and keep your coverage current.  

Filed under: Personal Finance by Julie Woodward
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Everyone lives in a flood zone.

Flooding is the top-ranked natural disaster in the United States, with a dozen potential causes ranging from heavy rains, tropical storms and hurricanes to new housing developments and rain after fire. Floods can occur in all 50 states and, when they do, they leave massive damage in their wake.

Flood damages exceed $2.7 billion annually.

As a homeowner, you carry homeowners insurance to protect against theft and loss. Typical homeowners insurance, however, excludes damages from flooding. Homeowners in Corpus Christi , therefore, should make sure to have a separate flood insurance policy. And once that policy is in place, there are other steps you should follow, too.

First, make a log of your possessions, either on paper or by video. In your log, include everything that you own of value. Next, if you own jewelry, have it appraised and store the appraisal; if you own appliances, log the serial numbers and attach original receipts.

Then, buy a safe-deposit box at a bank, for example, and store your possession log. 

All of this information matters because, in the event you need to make a claim, you’ll have an easier time dealing with the insurance adjuster. It’s hard to prove possession of items that have been washed away by flood waters, after all.

You’ll also want to share this list with your insurance agent in advance so your policy is made with the proper amount of coverage.

Floods can strike anywhere and, as many people learn the hard way, standard homeowners insurance does not include flood coverage. If you’re without flood coverage, talk to your insurance agent about adding a flood policy.

Because many policies don’t take effect until 30 days from purchase, this is one form of insurance you’ll want to buy in advance.

Filed under: Around The Home by Julie Woodward
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