Top Things You Should Know About PMI Insurance
PMI or private mortgage insurance is protection for the lender when your down payment is less than 20% of the price of the home. It protects the lender if the borrower defaults on the mortgage. It benefits the borrower because it allows them to buy a home now instead of later. There are some things you should know about PMI insurance.
Things You Should Know About PMI Insurance
If your home value increases, you may be able to cancel PMI insurance. You can contact the mortgage servicer to do this.
The charges vary depending on the size of the down payment and the loan.
It allows someone who have a small down payment to buy their home now instead of years later because they have to save.
You can cancel the insurance once you pay down your mortgage to where it equals 80% of the original purchase.
It is automatically terminates when the borrower pays down the mortgage to 78% of the value of the home.