Real Estate Alphabet Soup: P for Private Mortgage Insurance (PMI)
By Ritu Desai 703-625-4949, Northern Virginia,Washington DC & Maryland Realtor
(Samson Properties)
It is a beautiful Monday we're having today, everyone! We're back at it again with the Real Estate Alphabet Soup, and we are now at the letter P. We''ll be discussing about one of the insurances that you need to know about real estate so hang in there for some knowledge today.P for Private Mortgage InsuranceWhen applying for a mortgage, the lender will most likely need you to go for a down payment (typically 20%) of the home value. In the event that the home buyer or borrower can't pay for the said amount, the lender may charge you a PMI, or a Private Mortgage Insurance, as a part of getting a mortgage. This is to mainly protect the lender in the event of the buyer defaulting into payment. There are a lot of options within the PMI program. You have upfront PMI, monthly PMI, or lender pa...
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