In case you stop making payments, they want to know that they are protected with their investment.
So, if you do not put at least 20% down, Chances are there will be some type of private mortgage insurance unless you have a VA loan or a USDA loan. Some of the government loans do not have this PMI or private mortgage insurance. So how is it calculated? Well, the PMI is calculated with several different factors.
Some is going to be your credit is going to be how many people are on your loan, your loan to value, or how much you put in. If you put down 5, or 10, or 15%, these are all going to change how much that private mortgage insurance is, what loans have it. So the VA loan is one of the loans that does not have private mortgage insurance.
“PMI What is that? A lot of people ask, what is PMI? Do I need it? How much does it cost?”
The conventional loan will also have it. If you put less down than 5% or 10%, whatever the case may be. And then this question is asked by a lot of people.
Is it the same as homeowners insurance? So a lot of people confuse PMI with HOI or homeowners insurance. It protects you the homeowner and the lender in case your home catches on fire or it’s in an earthquake, or you have flood damage, all of those different factors happen, but it’s not going to protect the lender if you stop making your payments.
So that’s the big difference between those two? I hope this clears up PMI for you or Private Mortgage Insurance.
“It protects you the homeowner and the lender too.”
Please let us know if you have any further questions, you can go to our website at veteransnationalmortgage.com. and click apply now . We can give you a free interest rate quote, or we can help you to get pre-qualified without a hard inquiry to your credit.
You can also call us directly at (888) 922-2022.
Our team is excited to help you with your dream home.
Veterans National Mortgage | NMLS #2006604 – NMLS Consumer Access Portal
Thanks so much, and we’ll see you next video.