Eyal Tropen - Sr. Loan Officer

NMLS # 874253

Similar to 2006-2007, some areas are experiencing very rapid house price appreciation. Topping this list is Greater Seattle. When this happened in 2007, a crash soon followed... so


Are We in Another Real Estate Bubble?


The short answer is "probably not"... Let's start with a quick history lesson: 

Q: Should we buy a home now with a lower down payment and take out mortgage insurance? Or is it better to wait until we save enough down payment to avoid PMI before we buy a home ...

What is PMI?

Mortgage insurance (PMI) is required by lenders when taking a mortgage with a down payment lower than 20% of the value of the house (the lower of the purchase price and the appraised value). The insurance protects the lender in the event of a default from losses due to the difference between the selling price of the seized asset (after foreclosure and sale costs and expenses) and the unpaid debt.

So, is it better to wait until you save enough down payment to not pay mortgage insurance? Let's review the numbers...

Copyright © 2017. Eyal Tropen NMLS # 874253
American Pacific Mortgage | NMLS #1850
625 4th Avenue, Ste 200 Kirkland, WA 98033 | NMLS # 1055557
Phone: 425-922-1055 | Fax: 855-549-8730 
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Master Builders Association


WA-MLO-874253, TX, OR, CA-DBO874253 | American Pacific Mortgage supports Equal Housing Opportunity. NMLS ID# 1850 (www.nmlsconsumeraccess.org) | APM is licensed by WA # CL-1850, OR ML-2338, TX SML-1850, and "Licensed by the Bureau of Real Estate, Broker #01215943". All loans subject to credit approval and property appraisal. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. American Pacific Mortgage Corporate Office 3000 Lava Ridge Court, Suite 200, Roseville, CA 95661 | 916.960.1325