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Georgia Private Mortgage Insurance
If you take out a conventional mortgage loan in Georgia, you may be required to pay private mortgage insurance. Known as PMI for short, this insurance protects the lender from making a loss in case you fail to make your mortgage payments. Most Georgia lenders charge PMI to borrowers with 20% down payment or less. So one way of avoiding PMI is increasing the down payment on your mortgage to anything more than 20%.
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Meanwhile, you need to know that Georgia private mortgage insurance is calculated based on several factors. They include:
- The location of your home.
- The loan term.
- Whether the property is a primary residence or a second home.
- Down payment
- Credit score
- Whether you are purchasing or refinancing
Ultimately, the value you will get will be charged to your mortgage loan payments. There are various ways in which you can pay your Private Mortgage Insurance in Georgia. You can pay it all at once as a lump sum or opt for monthly payments and incorporate it in your mortgage payment. It can also be priced into your interest rate. These options give you more flexibility when deciding how you want to pay your PMI.See How Easy it is to Get Your Custom Rate!
You will stop being charged PMI once your principal loan amount has reached 78% loan-to-value. This will ease you financially and enable you to save or increase your mortgage payments. Note that although virtually all conventional loans attract PMI whenever the down payment is 20% or less, you can still get a mortgage deal with a lender-paid PMI. Some Georgia lenders agree to pay part of the PMI as an incentive for borrowers. If you want to know how you can get a mortgage loan, simply contact Moreira Team and we will help you.