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Articles tagged with: PMI

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[11 Sep 2011 | 2 Comments | 4,087 views]
What is private mortgage insurance?

A lot of factors go into calculating a mortgage payment, but one over which a homebuyer has a lot of control is the amount paid toward private mortgage insurance (PMI).
What, exactly, is PMI?
Simply put, it is insurance which helps protect the lender should the buyer go into default. The idea is that money raised through PMI premiums will cover the lender’s losses should the institution have to take back a home and sell it.
Buyers can’t do a lot about how much they pay on interest and principal every month or, …

Business, News, Real Estate »

[31 Oct 2010 | 2 Comments | 2,589 views]
Private mortgage insurance — what it is and how to avoid it

Once upon a time, lenders generally required home buyers to put down 20 percent of the purchase price of a home when taking out a mortgage.
Times have changed. While most banks generally do require a down payment of buyers, the once standard 20 percent isn’t so standard these days. However, there is still substantial appeal to putting 20 percent down on a home.
Not only will monthly house payments be less because the buyer putting 20 percent down isn’t financing as much, there’s another item to consider – private mortgage insurance …