What is PMI?

If you are not in a position to put the standard 20% down payment on the home you are purchasing you will likely need to factor in the cost of PMI (private mortgage insurance).
๐–๐ก๐š๐ญ ๐ข๐ฌ ๐๐Œ๐ˆ?
Private mortgage insurance is a type of insurance that may be required by your mortgage lender if your down payment is less than 20 percent of your home’s purchase price. PMI protects the lender against losses if you default on your mortgage.
๐–๐ก๐จโ€™๐ฌ ๐ซ๐ž๐ช๐ฎ๐ข๐ซ๐ž๐ ๐ญ๐จ ๐ก๐š๐ฏ๐ž ๐๐Œ๐ˆ?
Homeowners who obtain a conventional loan and put down less than 20% of the homes purchase price.
๐‡๐จ๐ฐ ๐ฆ๐ฎ๐œ๐ก ๐๐จ๐ž๐ฌ ๐๐Œ๐ˆ ๐œ๐จ๐ฌ๐ญ?
This depends on a borrower’s credit score and down payment. A general rule of thumb is 0.3% to 1.5% of the original loan amount each year. PMI is an extra cost, on top of the interest you pay on your mortgage.
If you have any questions or would like to get in touch with one of my preferred lenders prior to us touring any homes, contact me to get the process started.
๐Ÿ“ฒ(415) 259-8088
Torben Yjord-Jackson is pictured sailing. He is wearing a white jacket and the Golden Gate Bridge is pictured in the background.
๐‘ป๐’๐’“๐’ƒ๐’†๐’ ๐’€๐’‹๐’๐’“๐’…-๐‘ฑ๐’‚๐’„๐’Œ๐’”๐’๐’ – ๐‘น๐’†๐’‚๐’๐’•๐’๐’“
๐‘ฌ๐‘ฟ๐‘ท ๐‘น๐’†๐’‚๐’๐’•๐’š ๐’๐’‡ ๐‘ช๐‘จ, ๐‘ฐ๐’๐’„.
๐‘ช๐’‚๐’๐‘ฉ๐‘น๐‘ฌ 02050831

Leave a Comment

Your email address will not be published. Required fields are marked *