If you are unable to put 20 percent down for your mortgage payment, you will be required to pay Private Mortgage Insurance or PMI. This insurance protects your lender from borrower defaults.
If you are thinking about buying a home and your mortgage will require you to carry PMI, keep in mind that you’ll be increasing your monthly cost of owning a home. The good news is you’ll only need to carry PMI until the value of your home has appreciated or when your loan has been paid down sufficiently.
In today’s market place, the benefits of being a homeowner often outweigh the extra monthly cost of PMI. We’d be happy to help you evaluate mortgage options you’re considering or refer you to a qualified lending professional who can give you a full picture of your options.
Send us an email today at RealEstate@LandLhome.com + we'd be happy to help!