Getting your questions answered from a knowledgeable lender can make you a more confident and capable buyer. Below are frequently asked questions for mortgages with answers.
Private Mortgage Insurance (PMI) is provided by a 3rd party to protect lenders against loss if a borrower defaults on their loan. Private Mortgage Insurance is generally required for loans where the down payment is less than 20% of the home’s purchase price. If you’re refinancing with a conventional loan and your equity is less than 20% of the value of your home, PMI is also required. The cost of the mortgage insurance is typically added to the monthly mortgage payment.