Tag: PMI

Posted on 06/14/2020
Private Mortgage Insurance and Why It Is Required
Image by StartupStockPhotos from Pixabay In general, if you have less than 20 percent of a down payment for the house you want, you will have to pay private mortgage insurance (PMI). This insurance is a cost to you to protect the lender if you default on the loan. In most cases, it’s better to save the 20...
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Posted on 02/23/2020
How to Use Points to Your Benefit
Photo by Precondo via Pixabay Some mortgage companies offer loans with points. In a nutshell, paying points means paying down the interest rate. One point is equal to 1 percent of the mortgage amount. On a $200,000 mortgage, one point is $2,000. The percentage the interest rate lowers depends on the mortgage company and the market. For example,...
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Posted on 12/08/2019
A Quick Guide to PMI
Photo by Gino Crescoli via Pixabay Private Mortgage Insurance (PMI) may be a common term in home buying, but not every home buyer understands exactly what it will mean for their finances. This short guide will give you the basics, so there are fewer surprises down the line. What Is PMI? PMI is a type of insurance that...
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