As a result, your income tax will most likely increase. What this all means is in terms of researching your home purchase, be wary of PMI consideration. The Midwest was affected by the slumping housing market the most, with an average price decline of 4.2%. Once a year, you must be informed of: - your right to cancel or terminate your PMI - a contact address or phone number where you can find out when you can cancel your PMI. Do I have to pay for PMI until my mortgage is paid off? No. So if someone is about to become a significant customer, do your homework. That's not just about the flow of business, but also the flow of cash. If I was going to pay the bill within 30 days anyway, I'm likely to pay up right away to get that extra discount. But I'm surprised at the number of ways entrepreneurs do manage to borrow. Good for my bottom line; good for the business's cash flow. Consider Consolidating Your Loans It's often tough for small businesses to borrow money. For example, in the relatively slow growth town of Gainesville, Florida, a home bought in 1993 for $100,000 could have been sold in 2000 for $150,000. In the 4th quarter of 2006, home prices dropped in 73 markets out of 149 tracked, and the year-over-year decrease reached the record 2.7%. How do I cancel my PMI? Under the provisions of the HPA, your lender must automatically terminate your PMI when you’ve paid down your mortgage to 78% of the original purchase price or the appraised value of your home when you bought it, whichever is less, as long as your mortgage payments are current when you reach 78%. Because PMI is an added expense for the consumer, the federal government has a number of regulations regarding PMI. Joseph Anthony is a tax professional in Portland, Ore., who writes about finance and tax issues affecting small businesses. Good for my bottom line; good for the business's cash flow. David Lereah, chief economist with the NAR, said in a statement that he believed the housing slump had reached the bottom in the 4th quarter of 2006. The downside to this is that your home will be at risk if you default. Ben works for a portland web design and marketing company named Labworks Design. Do your homework and determine what the best scenario is for you. The West was the only region to mark price gains in 2006, with houses selling for 0.4% more than in 2005. You may want to check and see if this is possible before you decide to go with another lender. Ben works for a portland web design and marketing company named Labworks Design. At the start of 1982, this index of blue-chip companies actually stood lower, at 884.36. On an after-tax basis, a 10 percent a year return on stocks is considered very good. For example, in the relatively slow growth town of Gainesville, Florida, a home bought in 1993 for $100,000 could have been sold in 2000 for $150,000. Assuming a $10,000 down payment, that $50,000 gain amounts to a fivefold increase in your investment—not counting mortgage paydown. How much does PMI cost? Usually, the premiums on private mortgage insurance are about .5 percent of your loan total. Good for my bottom line; good for the business's cash flow.