Hidden Insurance Policy | What You Need Before You Buy a Home!
June 1, 2016 | Emily Coleman
Hidden Insurance Policy
Private Mortgage Insurance (PMI) is an insurance policy that covers your BANK or LENDING INSTITUTION against loss in case a homeowners DEFAULTS or stops paying their home loan. The BANK or LENDING Institution bears less risk because FHA will pay a “claim” to the BANK or Lending Institution in the event of a homeowner’s default.
Will you be required to pay for Private Mortgage Insurance?
PRIVATE MORTGAGE INSURANCE CAN BE A SIGNIFICANT PORTION OF YOUR MONTHLY HOUSE PAYMENT!
Check with your bank or lending institution to find out more!
To find out how much you can afford make sure to check our Mortgage Calculator.
Know the difference between a “Conventional Home Loan” and a “FHA Home Loan”. Ever wonder what an FHA Loan is? The Federal Housing Administration, generally known as “FHA”, provides Private Mortgage Insurance (PMI) on loans made by FHA-approved banks or lending institutions throughout the United States. FHA insures mortgages on single family and multifamily homes including manufactured homes. It is the largest insurer of mortgages in the world! For more information go to Emily Coleman, Realtor or HUD (US Department of Housing and Development.