What is private mortgage insurance?

What is private mortgage insurance (PMI) :

Private Mortgage Insurance is also know as guaranty mortgage insurance where the buyers need to pay the 20 percent down payment is essential to pay the PMI

If you want to control, your PMI you need to keep track of the transactions of your payments .if your loan value ratio is 80 percent then think that it is a right time to stop the PMI premiums. Lenders need to discontinue PMI automatically if it is up to 78 percent.

Advantages of PMI :

It plays a great role in mortgage industry where buyer has to pay less in order to achieve the homeownership. Buyer does not need to wait for so long to buy a new home. He just needs to make the 3 percent to 5 percent down payment.

Tips to cancel PMI :

  1. First call your lender also find out the process of PMI removal. Write a letter of request to go through of your payment history enquire him about the appraisal of property.
  2. Check weather you have enough equity also check out the risen value of your home
  3. Find out weather scenario of 0.20 (20%) or higher, and your information is right, so this is the good time to drop your PMI and save.
  4. You may reach up to 20 percent of benchmark as soon as possible wait only for the appraisal once you paid off 22% of your loan amount for two years, you can discontinue when it reaches 20% in future.

History of PMI :

In the year 1911, New York amended a law to permit mortgage includes the purchase and sales of mortgage. PMI companies has come up with there new strategy to target of moderate-income households.

Companies dealing with PMI :

  1. United Guaranty Corporation
  2. Republic mortgage insurance company
  3. Mortgage guaranty Insurance Corporation


Post a Comment