If you take out an FHA loan, you will pay mortgage insurance no matter how much money you put down. The FHA requires at least a 3.5% down payment, but unlike conventional loans, even if you put 20% down, you will still pay mortgage insurance. Get Matched with a Lender, Click Here. But how long must you pay the insurance? When FHA Mortgage Insurance Ends Unfortunately, FHA mortgage insurance never ends unless you pay the loan off in full. In other words, you pay mortgage insurance premium … [Read more...]
Private Mortgage Insurance VS Mortgage Insurance Premium
Private Mortgage Insurance Private mortgage insurance or also known as PMI is an insurance policy used in conjunction with conventional loans and they protect lenders from the possible risk of default and foreclosure. Buyers who cannot make a significant down payment or choose not to can obtain mortgage financing at affordable rates. If you purchase a new home and want to put down less than 20%, your lender will can minimize its risk by requiring that you buy insurance from a PMI company before … [Read more...]