5-Point-5
5 Things You Didn't Know About Mortgage Insurance
Mortgage insurance can be confusing, and it isn't necessarily a bad thing. It can be a tool that helps you become a homeowner sooner.
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Mortgage insurance can be confusing, but it can also help make homeownership possible. Here are 5 things you may not know.
It's Common with Smaller Down Payments
Conventional loans typically require mortgage insurance with less than 20% down. This allows buyers to purchase without waiting to save 20%.
PMI Isn't Always Permanent
With conventional loans, private mortgage insurance can eventually be removed once certain equity and loan requirements are met.
FHA Mortgage Insurance Works Differently
FHA loans have different mortgage insurance rules. Depending on your down payment, it may remain for the life of the loan.
VA Loans Don't Require Mortgage Insurance
Eligible VA borrowers don't pay monthly mortgage insurance, even with no down payment. That's a significant benefit of VA financing.
Lender-Paid PMI Is an Option
Some lenders offer lender-paid mortgage insurance. The cost is typically built into a higher interest rate instead of a separate monthly charge.
Mortgage insurance isn't necessarily a bad thing. It can be a tool that helps you become a homeowner sooner.