MORTGAGE INSURANCE

Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. It's usually required for borrowers making a down payment of less than 20%.

Similarly to auto insurance, mortgage insurance requires payment of a premium, is for protection against loss, and is used in the event of an emergency. If a borrower can't repay an insured mortgage loan as agreed, the lender may foreclose on the property and file a claim with the mortgage insurer for some or most of the total losses.

PMI stands for Private Mortgage Insurance or Insurer. These are privately-owned companies that provide mortgage insurance. They offer both standard and special affordable programs for borrowers. These companies provide guidelines to lenders that detail the types of loans they will insure. Lenders use these guidelines to determine borrower eligibility. PMI's usually have stricter qualifying ratios and larger down payment requirements than the FHA, but their premiums are often lower and they insure loans that exceed the FHA limit.

For more information on mortgage insurance, or if we can answer any questions, please contact us today!

We offer rent to own, lease purchase option, owner financing, & seller financed homes. We have many flexible home ownership programs for those who may need to rent today and own tomorrow. We can assist with all or some of the financing depending on your needs. We help with credit repair, establishing a payment history, & refinancing to the best rate possible when you're ready.

Thanks,

ATX Rent To Own is an ALLRentToOwn.com Local Specialist

http://www.atxrenttoown.com  & http://www.allrenttoown.com