PMI

Agent Name: Chad McShane Phone: 763.412.3810 Phone Two: 612.685.4572 Fax: 763.412.3880 E-mail: chadmcshane@hotmail.com Address: 2705 Bunker Lake Blvd. Andover, MN 55304

What is PMI?

PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value.  In other words with less than 20 percent down payment are normally required to pay PMI. 

Benefits of PMI

PMI plays an important role in the mortgage industry by protecting a lender against loss if the borrower defaults on a loan and by enabling borrowers with less cash to have greater access to home ownership.  With this type of insurance it is possible to buy a home with as little as 3 or 5 percent down payment.  This means you can buy a home sooner without having to wait years to accumulate a down payment.