What Can You Tell Me About Mortgage
Insurance for a Home Purchase?
Private mortgage insurance can reduce your down payment when you’re buying a home? If you obtain a conventional loan, you may make a down payment of 5% or less. Through the lender, you will be required to buy Private mortgage insurance (PMI). This insurance provides protection for the lender in case of default. It allows the lender to approve a larger loan amount. Private mortgage insurance offers a variety of payment options. You may make an initial payment at closing and monthly payments with the payment. You may make only an initial payment or only monthly payments. You may even increase your interest rate and have the lender pay the mortgage insurance. We recommend that you speak with three lenders, who will ask you questions. Be sure to ask each lender for a comparison of the benefits of each of these plans.