Do I Really Need Private Mortgage Insurance?

Private Mortgage Insurance (PMI)

If you’re unable to afford the 20% down payment when purchasing your home, you will need to purchase Private Mortgage Insurance or (PMI). PMI helps protect the lender in the case that you decide not to pay. PMI only covers the lender and provides no protections to the buyer.

PMI

With conventional loans, you must pay for Private Mortgage Insurance (PMI). Lenders require it to protect against losses if a borrower defaults.

Mortgage

When buying a new home, most people apply for a mortgage. This loan allows you to borrow money for the property and repay it with monthly payments plus interest

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