Secrets Your Mortgage Broker Will Not Tell You

Like it? Share it!

Facebook

Pinterest

Reddit

Twitter

Google+

See If You Can Avoid Paying For Private Mortgage Insurance

Source: https://www.forbes.com

Private Mortgage Insurance (PMI) protects the bank in case the borrower can’t pay the mortgage and the bank has to foreclose on the home. This is often required for buyers who make less than a 20% down payment on their home. This can add hundreds of dollars to your monthly payments. If a lender tells you it has to charge you PMI, you may be able to find a credit union or another lender that will not charge the mortgage insurance. Take the time to shop around. Also note that PMI is different from mortgage life insurance. PMI protects the lender, while mortgage life insurance protects your heirs in case you die by paying off your debt.