Do You Have P.M.I.?
P.M.I. stands for Private Mortgage Insurance. P.M.I. is insurance coverage that is required to secure non-government or conventional home loans. Private mortgage insurance guarantees that the insurance company will pay the lender if the borrower defaults on the loan. This is not the same kind of insurance that pays off a loan if the borrower dies.
Different lenders use different criteria to decide whether they want P.M.I. to cover the loan. If P.M.I. coverage is a requirement for the loan, the borrower must meet the insurer's criteria, including income requirements and credit rating. The greater the risk to the insurer, the more expensive the P.M.I. coverage is to the borrower.
P.M.I. also benefits the borrower because the lender does not have to ask for as large a down payment when their risk is not as great.
For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage Corp. at (800) 741-7813 or 910-692-6225.
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