Frequently Asked Questions about PMI
By Jaime Charouf, Broker/Owner
(EZ Realty & Investment Group | EZ Funding Group, Inc.)
Frequently Asked Questions about PMI! What is PMI? Private Mortgage Insurance (PMI), is insurance that protects a lender or investor against loss from borrowers that stops making their mortgage payments. It allows a home buyer to put down as little as 3% instead of 20%. Borrower may cancel PMI once certain conditions are met by the lender or investor. Typically, once your mortgage balance reaches less than 80% of the house value, you may cancel PMI. Pros of PMI? The advantages of Private Mortgage Insurance (PMI), it allows individuals to purchase a home sooner because they don't have to accumulate the typical 20% down payment. Cons of PMI? The disadvantages of Private Mortgage, it adds to the expense of your mortgage payments and house ownership in general. If you're curious how l...
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