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Eliminate Private Mortgage Insurance (PMI)
to substantially reduce your house payments. An appraisal could
prove that you have at least 20% equity in your home and the
lenders will no longer require PMI.
The
federal government requires that any loan given on a property
that does not have 80% loan to value must have PMI. Mortgage insurance
protects the lender from loss due to a payment default from
the borrower.
The
lender may require you to pay your premium monthly or charge a
lump sum premium paid at the day of closing covering the life
of the loan in advance.
The premium may cover specific number of months, a year
in advance or the total amount. This insurance should
not be confused with hazard or disability types of
insurance. |
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