Clay Lee
Broker/Realtor®
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Mortgage Help Category
What is Private Mortgage Insurance (PMI)? Not Everyone Can Get It!
June 23rd, 2008 Categories: Buying Real Estate, Foreclosures, Market Trends, Mortgage Help
PMI has been a mystery to home buyers for as long as it has been in existence. It’s that insurance that almost every home buyer has to get in order to buy a home with less than a twenty percent down payment. It is essentially insurance for the lender that covers the amount between what you put down and eighty percent of the value of your home. The larger your down payment, the less PMI you need. As your home increases in value or you pay down your mortgage, it’s important to keep an eye on how much you owe on your home compared to what it is worth. Once your owe eighty percent or less of your homes value, you need to contact your mortgage company about having the PMI coverage removed from your payment. This could save you a significant amount every month. The bank will require an appraisal and the process may take a month or so, but it’s well worth it.
In the past PMI seemed to be available to Read the rest of this entry »
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