Real Estate Alphabet Soup: P for Private Mortgage Insurance (PMI)

By
Real Estate Agent with Samson Properties VA0225077251

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 Insurance

When 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 pay PMI where they raise the interest rate. If it is not an FHA loan, though, you may be able to get rid of it if your home value appreciates or you pay down the mortgage. So speak with your lender to find your options.

Looking forward to start your journey in owning your dream home and want to know how mortgage works? I can help you with that. Call me at 703-625-4949 or email at info@enovahomes.com and know how you can make your move today.

Posted by

 
                             
Associate Broker
MRP, ABR, ePRO

NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties
Cell - 703-625-4949
Email - info@eNOVAHomes.com
Web: www.eNOVAHOMES.com
 
Residential real estate agent serving Northern Virginia in Fairfax & Loudoun county over a decade and almost $100+M in sales volume experience. 


 

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