April 3, 2017
 

 

Private Mortgage Insurance (PMI)

April 3, 2017 by Mary Goodwin - Genworth Mortgages Insurance Comment

Register for our Free Home Buyer Seminar on April 18th from 6-8 pm at our 33 Franklin St branch.

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Private mortgage insurance (PMI) enables members to qualify for a conventional loan with as little as 3% down by insuring that Triangle will be made whole in the event the member can’t make his/her mortgage payments and the loan goes into default. PMI is not Mortgage Life Insurance which pays off your mortgage if you die. Nor is it homeowners insurance, which protects you from loss due to fire, theft or other disaster.

If you have a home loan insured with private mortgage insurance (PMI), your mortgage payments will include the cost of the mortgage insurance premium. The premium can be paid monthly, annually, using a combination of upfront and monthly (called Split), or all up front (called a Single).

PMI provides Homebuyer Education to first time homebuyers… Genworth has a free online course that you can take to learn about differences in renting versus buying and what you need to provide to Triangle in order to qualify for a conventional PMI loan.

PMI is tax deductible.

PMI can be cancelled at 80% Loan to Value if borrower pays for an appraisal and the value comes in high enough; otherwise PMI is auto cancelled at 78% loan to value, and monthly mortgage payments are reduced by that monthly PMI amount.

While interest rates and home prices are at an all-time low, by giving Triangle the safety net that your loan will be PMI insured, you can take advantage of getting into your home sooner and keeping your longtime costs down. With Conventional PMI loans, there is less paperwork, and these loans can be done faster as a rule.

And PMI gives you Peace of Mind - if your ability to make your mortgage payment is threatened by financial difficulty, Genworth’s Homeowner Assistance Program may be able to help. We try to work with you and Triangle to work out a plan to help you stay in your home.

Other benefits of PMI may include PMI partner offerings in addition to those mentioned above.

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