If the loan to value (LTV) ratio of a first mortgage is greater than 80%, lenders generally require private mortgage insurance (PMI). In such a case, it can sometimes be economical for a borrower to limit the size of the first mortgage to an 80% LTV and use secondary financing to borrow the remaining amount needed.EFINITION of 'First Mortgage'. A mortgage in a first lien position on the property that secures the mortgage. A first mortgage has priority over all other liens or claims on a property in the event of default.
Not all custom homes are designed by an architect. Custom home design companies may create custom home plans as well. Their costs typically range from $1.50 per square foot to more than $2.50 per square foot for the total project and home size. For smaller homes, this may be a budget-friendly option. However, for larger homes, this can be a substantial budget item.
Building a new home begins long before the foundation is poured. To avoid costly mistakes during the construction process, start with these five important steps. As you move from dream house to real house, be sure to ask questions and share your progress. 1. Plan Your Budget. Begin now to think about how much you can afford to spend and how much building your new home is likely to cost. Chances are you will need a construction loan and a mortgage. It's not too early to find out what size loan you qualify for.