What is private mortgage insurance?

What is PMI?

As the first post in the First Time Home Buyer Series, I want to address the initial question clients always have when looking to get a mortgage: What is private mortgage insurance?

Private mortgage insurance, PMI, is a type of mortgage insurance from private insurance companies used with conventional loans. Similar to other kinds of mortgage insurance policies, PMI protects the lender if you stop making payments on your home loan. PMI can be arranged by the lender and provided by private insurance companies.

So, what is PMI? The ultimate catch 22**

Most lenders require PMI when a homebuyer makes a down payment of less than 20% of the home’s purchase price – or, in mortgage-speak, the mortgage’s loan-to-value (LTV) ratio is in excess of 80% (the higher the LTV ratio, the higher the risk profile of the mortgage) – https://www.investopedia.com/mortgage/insurance/

While it helps borrowers attain a loan with a lesser down payment & potentially become a home owner sooner, its purpose is to protect the lender. Important to note: Similar to interest, property tax, and homeowners insurance, payment of your PMI does not build equity in your home.

You may be thinking that buying insurance on your mortgage may sound a little strange, but it protects the lender’s investment in the home. While yes… it’s another fee you need to pay, it’s advantageous to homeowners as it makes home affordability a reality sooner.

PMI MISCONCEPTIONS

  • PMI isn’t just for people who can’t afford a 20% down payment. It’s also for people who don’t want to put down 20%, so they have more cash on hand for repairs, remodeling, furnishings, emergencies, etc.
  • PMI isn’t forever. Borrowers pay their PMI until they have accumulated enough equity in the home that the lender no longer considers them high-risk.
  • The rate of your PMI depends on the size of the down payment and mortgage, the loan term and your credit score. The greater your risk factors, the higher the rate you pay.

 

**Disclaimer: I am not a mortgage professional, always consult with your lender regarding mortgage decisions. If you are wanting to get connected with some of my highly suggested lenders in Chicago (& elsewhere) contact me.

Wrigleyville: Neighborhood Spotlight

What to do in Wrigleyville, Chicago | Kelseyshawchicago

As a previous Wrigleyville resident, take it from me: this is one of the most fun neighborhoods in Chicago. Steps from the Friendly Confines, you can’t beat this little pocket of Lake View. Wrigleyville is home to the second oldest stadium in baseball and beloved 2016 World Series championship team, The Chicago Cubs. A magnet for sports fans, young professionals, & families alike; this neighborhood is exceptionally attractive to those seeking vibrant nightlife with numerous bars along Clark, Addison, and Sheffield Avenues.

Must Visit:

  • Wrigley Field – GO CUBS GO! Of course, you can’t come to Wrigleyville without catching a Cubs game!! If you come on an off day, take a tour of field & get the insider experience. If you are lucky enough to get to a game, you obviously need to get a Chicago Dog – but BEWARE: you must not order from the counter, you need to go to a stand & ideally you want to go to the penthouse deck facing Hotel Zachary/Clark for the best dog, city views, & a little known spot within the stadium. Be sure to take a quick walk in the new Gallagher Way before, after, or during the game for a break from the crowds. Lastly, if you are in the bleachers (which is a guaranteed great time) don’t forget sunscreen & be ready to get on TV!
  • Dutch & Doc’s –  American fare & classic cocktails, this new restaurant definitely filled a void in the neighborhood. A two-story dining room provides the coolest experience at the corners of Addison & Clark, just across from the world famous Cubs Marquee. Be sure to get the Mac & Cheese & Mudslide cocktail, because who doesn’t love cheese & a boozy milkshake. Reservations accepted & encouraged.
  • Hotel Zachary – Inspired by the designs of world-renowned Wrigley Field architect and Chicagoan Zachary Taylor Davis, Hotel Zachary is where history and style come together. The bar is so beautifully designed, grabbing a cocktail here transports you back in time. If weather permits, do your best to grab a seat on the terrace & take in the views of the ballpark.
  • Big Star – A new addition to the neighborhood, this has easily become one of my favorite spots. Amazing margarita’s, tons of great menu items, & a two-story open air restaurant this is a great pre-game, post-game, or non-game day spot. Get a pitcher & the Big Star Hot Chips.
  • Al’s Beef – Famous for their Italian Beef’s, this is one of my favorite late night/post game spots. Grabbing a quick & guaranteed delicious italian beef always makes me a happy girl. Ask for the Gypsy Fries, you won’t regret it.
  • Sluggers – It’s an experience we all need to have. Unreasonably expensive beers, fun music & a rowdy dance floor, batting cages, & carnival games – what more do you need!
  • Old Crow – If you love country music, cold beer, BBQ, & fresh air; Old Crow is a must visit. Great bands, live karaoke, & pretty solid deals make this a neighborhood favorite.

If you’ve been to Wrigleyville, tell me your favorite spots! Or interested in living in the area, contact me to get started.

happy place, an interactive pop-up experience

KelseyShawChicago - HAPPY PLACE

 

Real Estate is essentially 24/7/365 & sometimes a gal just needs a break. Sometimes you need to just take a moment & do what makes you HAPPY. So when I saw a giant smiley face being installed on the side of a vacant warehouse while driving to an appointment.. I had to investigate. 

To my surprise, a multi-sensory, interactive pop-up experience was coming to town & I knew it was going to be something I had to do to – & I was right, it was amazing. 

“HAPPY PLACE was created because we BELIEVE that our world today can use a lot more happiness. To make this DREAM come true, we set out on a journey to create a special place where anyone who walks in is surrounded by all things HAPPY. The first HAPPY PLACE in Los Angeles has been nothing short of a DREAM for us and now we are excited to take the Happiness on Tour and visit cities all around the world. Watching so many visitors of all ages from all around the world come through our doors and leave with a smile, made us WONDER, why not spread the HAPPY? So decision was MADE to take HAPPY PLACE on a worldwide tour with our second stop, the great city of CHICAGO!!!

Founded by Jared Paul and opened originally on November 20, 2017, this massive pop-up experience is filled with larger than life size installations, multi-sensory immersive rooms, and dozens of moments curated to Capture Your Happy. Visited by more than 100,000 guests during our SOLD-OUT run in Los Angeles, the highly anticipated HAPPY PLACE Chicago launch will bring smiles to thousands more. Highlights include: dancing in the middle of world’s largest indoor Confetti Dome,  jumping off of a larger than life double rainbow into a pot of happiness, and posing inside HAPPY PLACE‘s signature rubber ducky bathtub of fun! and let’s not forget 7-foot stilettos made of a million candies and 6-foot-tall X and O letters made out of thousands of tiny mirrors, surrounded by a wall of one thousand red lips!!!” – Happy Place

 

HAPPY PLACE | KelseyShawChicago

 

Unexpectedly located along Elston Ave. in Noble Square, it’s impossible to not be HAPPY when visiting this exhibit & it’s 13 brightly-colored, highly interactive rooms.

Originally only here for a short time, HAPPY PLACE announced that they are extending their stay until September 3, 2018 – So grab some friends, charge your phone, & come “capture your happy” or at least some quality content for instagram.

 

 

Have you had a chance to visit HAPPY PLACE?