Sunday, April 7, 2013

How to Reduce or Eliminate Private Mortgage Insurance | Fox Business


Homebuyers that can’t afford to put 20% down on the purchase price of their new home often opt to take out private mortgage insurance (PMI) with their lender to help seal the deal. This insurance protects the lender from a default, and can add more than $100 to a monthly mortgage payment.

“It’s very common to get PMI insurance if you have less than 20% [to put down],” says Bob Walters, chief economist at mortgage lender Quicken Loans based in Detroit. “The price you’ll pay depends on your loan to value and your credit score.”

Read more: How to Reduce or Eliminate Private Mortgage Insurance | Fox Business

1 comment:

  1. If you take out a mortgage loan, in majority of the cases, you are required to make a certain percentage of the purchase price of the house as down payment. The more down payment you make, the better it is for you. By making higher down payment, you can actually lower down your future monthly payment amount. In fact, if the down payment amount that you make is less than 20% of the purchase price of the house, then you are required to make private mortgage insurance(PMI). This PMI actually safeguards your lender against you defaulting on the mortgage loan. To know more on this, go through this page http://www.mortgagefit.com/pmi-required.html

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