Avoiding Mortgage Insurance: RV Term Truck Collisions and Get Free Insurance Comparison

Get Free Insurance Comparison
RV Term Truck Collisions -> Get Free Insurance Comparison -> Avoiding Mortgage Insurance

Avoiding Mortgage Insurance

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. These programs are possible because of private mortgage insurance. When you purchase a home you are required to purchase traditional homeowners insurance. On top of that you are required to pay the premiums for PMI, usually in your escrow account, if you do not put at least 20% down. Private mortgage insurance does not give you additional homeowners insurance coverage, but it does give the bank insurance just incase you do not fulfill your obligations by not paying your mortgage payments. The use of PMI has been a great tool to get more Americans into homes, but there are some downfalls.

The Downfalls of PMI

The problem with private mortgage insurance is that it raises your monthly payment and, unlike the interest on a traditional mortgage, PMI is not tax deductible. You can eventually cancel private mortgage insurance if you can prove that you owe 80% or less of your home’s value. Getting your mortgage balance down to 80% of the home’s value can take many years. The good news is that you can have all three: A low down payment, a low monthly payment, and NO PMI!

Next, let’s review your options for avoiding PMI.

« Physical Hazards Insurance | Insurance Myths »

Instant Motorcycle Breakdown Comparison

Many teens frequently query about on-line motorhome insurance breakdown in Portland or average motorbike assurance breakdown for female. The answer is simple: learn the article "Avoiding Mortgage Insurance" about get free insurance comparison and observe the advices for drink drivers from the online auto mobile insurance adjusters.

Avoiding Mortgage Insurance
Avoiding Mortgage Insurance

Category Get Free Insurance Comparison


Get Free Insurance Comparison-99
Get Free Insurance Comparison

Benefits of Having Mortgage Protection Insurance. As a homeowner, you always tend to worry about being unemployed as it also means you won't be able to ...

Homeowner Carry Mortgage Protection Insurance. As a homeowner, you’ve probably wondered from time to time what might happen if you were unable to work, and ...

Mortgage Protection in Times of Redundancy. Mortgage Protection in Times of Redundancy!Author: Kirthy Shetty How to protect your home from being repossessed? How do you make your ...

  • Search option on automotive website

    • Find out the most affordable deals and prices here.

URL-address: http://car-insurance-news.com/avoiding-mortgage-insurance-14889.html

Find cheapest vehicke insurance premium from automotive assurance department. Avoiding mortgage insurance and basic price for insured drivers. New York comissioner for Avoiding Mortgage Insurance