What is PMI?
PMI is private mortgage insurance. Lenders will throw this term around, and it is common not to understand what it means or how it impacts you. Most lenders will require PMI when you put less than 20% down. The purpose of PMI is to protect the lender in case you default..of course, they are always looking out for themselves. PMI rates vary based on the type of loan, the amount being put down (your downpayment), and your credit score. For some types of loans (currently FHA), you will never get rid of PMI, whereas others can eventually remove PMI. Every loan is different, so be sure to talk to your loan professional or Realtor if you have any questions. Shoot me a message anytime, I would love to work together!
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