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pmi roma
17 décembre 2010

pmi roma

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Lenders generally require you to purchase PMI - Private Mortgage Insurance , if you can't come up with at a least 20% down payment. PMI is a rather expensive insurance policy that insures the lender against default if

you walk away from your home.

Not everyone has to pay this insurance. There are federal and state plans for low income earners to help them buy a home with little or no down payment and without mortgage insurance, If you think you qualify, contact

the FHA. Local bank and mortgages brokers can also hook you up with these programs.

Also lenders have come up with schemes to help homeowners avoid paying PMI. These are generally known as 20-80 or 10-10-80 loans or some variation thereof.

Basically the lender arranges for 100% financing through multiple mortgages, using whatever down payment you have. These only make sense if the costs of the loans are less than the cost of the mortgage and PMI

combined.  pmi roma

In this article we will only consider borrowers who don't have the 20% and don't want to or can't qualify for 100% financing.

The main purpose of PMI is to allow you to buy a home without having to wait years to save up the down payment. Lenders are more comfortable if you put down 20% or more since you are less likely to walk away from

the house if problems arise.

Private mortgage insurance covers the down payment if you default and makes lenders much more eager to grant a mortgage.

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