How PMI Can Save You Money
Private mortgage insurance, or PMI, provides protection in case you happen to default on your loan. If you make a 20% down payment, you don’t have to pay PMI. If you don’t happen to meet the 20% down, you may have to pay a monthly premium for your PMI.
To begin, PMI covers your loan officer in case you can’t make payments on your house. Although, these fees vary based off of differing factors. These can include your credit score, the type of home you purchase and the amount of your loan. When used properly PMI is a tool that can help you to build wealth. If your credit score is good enough, you can avoid paying costly down payments to free cash up for other costs.
Additionally, PMI will typically fall off the loan once you have reached 20% equity in your home. If you have questions about a current loan with PMI, contact your loan officer today.
A private mortgage insurance is such a wonderful tool as it allows you to qualify for a loan which, originally, you may not be approved for. As always, this product may not be for everyone. Get in contact with us today for more information!