What is property mortgage insurance – PMI?

    Back in the day real estate was purchased with a requirement of a 20% down payment.

    During the last real estate heyday – 2005-2008, there were loans that were granted where a borrower could borrow with a loan for 80% of the purchase price and another loan for the remaining 20%(as your downpayment).

    They had different variations of this – there was a 80 – 10 – 10 and a 80 – 10 – 5- 5.  Etc…  All to provide the borrower the necessary 20% down to buy a home.

    Today the number(down payment) needed to purchase real estate is much lower.  You can obtain, if you qualify, a 3% down conventional loan.  You can also get a 3.5% down FHA loan that requires less in the way of needing stellar credit.

    You can also borrow within a 5, 10 and 15% down conventional loan type.

    However, anything less than 20% down in today’s real estate realm is going to have PMI attached to it.

    PMI – Property Mortgage Insurance.

    It is a fee that protects the lender lending you the money when you have less than 20% skin in the game.

    How much the monthly fee is going to be will depend on your credit scores and “qualification” ability.  Make sure you ask your lender and PMI is, or can be, negotiable.  Ask the lender you are dealing with is you can borrow without it or get it at a larger discount.

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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