PRIVATE MORTGAGE INSURANCE PAYMENT OPTIONS
When it comes to having PMI on your loan may qualify you for a few options of choice.
Monthly PMI aka Borrower Paid PMI – the PMI premium is added to your monthly mortgage payment. The borrower pays the same amount every month until the loan balance is paid down to 78-80% of the initial property value, at which point the payments cease.
Lender Paid PMI – the lender pays your PMI premium for you by increasing your interest rate. This option may not be in your best interest if you plan to retain the home for the duration of the loan as it can never be removed form the loan. You will be paying the higher rate over the life of the loan.
Financed PMI aka Single Premium PMI – this type of PMI allows you to finance the MI premium in a lump sum into the loan amount. This eliminates the need for monthly PMI and generally gives the borrower a lower monthly payment.
This information was made available by Lisa Blake – A Premium Partner
Want information like this without the hassle? Sign up below.
[inbound_forms id=”default_3″ name=”Simple Email Form”]