What is private mortgage insurance and why is it required?
Private mortgage insurance (PMI) is insurance written by a private company that protects the lender from losses in the event the borrower defaults on his or her mortgage. Some lenders require borrowers to carry private mortgage insurance coverage in order for them to be willing to issue the loan. Even if you have a good credit rating, lenders still require private mortgage insurance if you make a down payment of less than 20%. Without mortgage insurance, the lender could be subject to considerable financial loss so to limit their risk; private mortgage insurance is required for all conventional loans with less than a 20% down payment. As an alternative, the blended mortgage has been popular for some time. This is a combination of a 1st mortgage and a 2nd mortgage. Since MI is only a factor for a 1st mortgage, that 1st mortgage is typically 80% of the purchase or refinance amount, satisfying the 20% “equity” required to avoid mortgage insurance.
Private mortgage insurance (PMI) is insurance written by a private company that protects the lender from losses in the event the borrower defaults on his or her mortgage. Borrowers are required to pay the premium for private mortgage insurance. Even if you have a good credit rating, lenders still generally require private mortgage insurance if you make a down payment of less than 20%. Without mortgage insurance, the lender could be subject to considerable financial loss so to limit their risk, private mortgage insurance is required for all conventional loans with less than a 20% down payment. As an alternative, the blended mortgage has been popular for some time. This is a combination of a 1st mortgage and a 2nd mortgage. Since MI is only a factor for a 1st mortgage, that 1st mortgage is typically 80% of the purchase or refinance amount, satisfying the 20% “equity” required to avoid mortgage insurance. The 2nd mortgage is typically 10% or 15% of the purchase or refinance amount. The bl
Private mortgage insurance (PMI) is insurance written by a private company that protects the lender from losses in the event the borrower defaults on his or her mortgage. Borrowers are required to pay the premium for private mortgage insurance. Even if you have a good credit rating, lenders still generally require private mortgage insurance if you make a down payment of less than 20%.
Private mortgage insurance (PMI) is insurance written by a private company that protects the lender from losses in the event the borrower defaults on his or her mortgage. Borrowers are required to pay the premium for private mortgage insurance. Even if you have a good credit rating, lenders still generally require private mortgage insurance if you make a down payment of less than 20%. However, there are strategies to avoid paying PMI which can help save you a great deal of money.
Private mortgage insurance (PMI) is insurance written by a private company that protects the lender from losses in the event the borrower defaults on his or her mortgage. Borrowers are required to pay the premium for private mortgage insurance. Even if you have a good credit rating, lenders still generally require private mortgage insurance if you make a down payment of less than 20%. Without mortgage insurance, the lender could be subject to considerable financial loss so to limit their risk, private mortgage insurance is required for all conventional loans with less than a 20% down payment. As an alternative, the blended mortgage has been popular for some time. This is a combination of a 1st mortgage and a 2nd mortgage. Since MI is only a factor for a 1st mortgage, that 1st mortgage is typically 80% of the purchase or refinance amount, satisfying the 20% “equity” required to avoid mortgage insurance. The 2nd mortgage is typically 10% or 15% of the purchase or refinance amount.
