Private Mortgage Insurance in Florida
Florida lenders take a lot of risks while lending money through mortgages to help people make a home. This is why lenders need to use some protective measure in case the borrower defaults on payments, and one such measure is by charging private mortgage insurance in Florida.
Private mortgage insurance, or PMI, minimizes the lender’s risk on borrowers who pay 20% or less of the mortgage amount as down payment. With this insurance in place, lenders can recover their costs after the house’s foreclosure.
Various factors are taken into consideration to calculate private mortgage insurance like the loan term, your credit score, the down payment amount, if you are buying a primary home or second home, the location of the property and if you are getting a loan to buy your home or refinance an existing mortgage.
There are also three different ways to pay your private mortgage insurance which you choose based on your convenience. You can either opt to have it paid upfront as a lump sum, you can pay it monthly with your monthly mortgage payment, or you can have it calculated with your interest rate.
Your mortgage insurance payments will not last throughout the mortgage term. It’s usually stopped once you pay off about 78% of your loan value, after which you can use the same money to pay off your mortgage quickly.
With so many factors, calculations and decisions to make about getting private mortgage insurance, it can be confusing. This is where we, the Moreira Team can help you decide how much of private mortgage insurance you will need, so that you can buy your home even if you are only looking to place a small down payment.
Florida County Mortgage Service Areas