- 2018 Posts

  1. FHFA Conforming Loan Limits 2019
  2. How 2018 Market Trends Will Affect Wisconsin Buyers
  3. No Money Down Home Loans Appleton Oshkosh Green Bay Wisconsin
  4. Benefits of using FHA for your home loan
  5. Benefits of being a homeowner
  6. Wisconsin local lender vs online lender
  7. Home Loan Pre-Approval
  8. No Money Down Home Loan
  9. Serve and Support Loans
  10. Debt Consolidation and Cash Out

+ 2017 Posts

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+ 2015 Posts

What is Mortgage Insurance - PMI

December 14, 2015

Mortgage insurance is a term we hear frequently when talking about a home mortgage. Typically, anyone purchasing a home with less than 20% down of the purchase price will be required to pay for mortgage insurance. It is called PMI – which stands for Private Mortgage Insurance. It’s called Private Mortgage Insurance because it is provided to your lender for conventional loans from a private insurance company.

 

Can PMI help me get my dream home without saving for a huge down payment? YES! PMI can assist you in qualifying for a home loan with less than 20% down. PMI allows the lender to lower the risk of lending without 20% down, helping people qualify for a loan they might not be able to get otherwise.

 

How does PMI work? PMI is put in place to help protect the lender if you were to stop making payments on your loan, because there is less than the desired 20% equity in the home for a typical loan approval. (PMI is not to be confused with a homeowners insurance policy.) Be sure to make your payments on time, as you would with any home mortgage. PMI does not protect your credit score, or help you if you cannot make a payment.

 

If your loan has PMI, it will typically be included with your monthly mortgage payment. PMI can be thought of as similar to paying interest or property taxes, payments do not go toward the principal of your loan and do not build equity.

 

PMI is a great solution to those looking to purchase a home. With home loans available with little or no money down, it is an affordable answer. Contact our office today with any questions you may have about PMI or getting pre-qualified for a new home purchase. GSF mortgage serves the greater Green Bay, Appleton, Fond du Lac, Little Chute, and Fox Valley areas.

 

 

Ron Meyer
GSF Mortgage Corporation
300 Patriot Dr.
Little Chute, WI 54140
(920) 788-9608
rmeyer@gogsf.com
NMLS #222688 & 1018