Your Options for Paying Private Mortgage Insurance

When you purchase a home with a down payment of less than 20%, or refinance your home with less than 20% in home equity, your lender will require you to pay private mortgage insurance (PMI).

You’re financing the home purchase with less skin-in-the-game when you make a smaller down payment, so mortgage lenders view these loans as slightly riskier than loans with an 80% or lower loan-to-value ratio. Your lender will reduce the risk to the financial institution and still be willing to approve a loan for you by requiring PMI, which is insurance that protects the lender in case you default on the loan.  Read more by clicking the link below

Your Options for Paying Private Mortgage Insurance

 

 

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