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Home Buying: You Don’t Have to Pay Private Mortgage Insurance or PMI
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Posted on
Oct 19 2007 6:36 AM
by
Asif
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What is PMI or Private Mortgage Insurance and is it Necessary?
Private Mortgage Insurance, or PMI, is a type of insurance that insures the lender in case the buyer defaults on the loan. The lender, or bank, requires PMI when the buyer has a down payment less than 20% of the asking price of the home. Private mortgage insurance has good and bad points, and there are ways to avoid paying it without putting down the required 20%.
Private Mortgage Insurance has it’s Good Points
The good point about PMI is that it lets one buy more of a house without having to save up the required 20%. Many Americans can now reach the American dream with popular 3-5% down programs..................
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