What is mortgage insurance and how does it work?
CFPB.Gov Defines Mortgage Insurance As:
Answer: Mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to get.
Typically, borrowers making a down payment of less than 20 percent of the purchase price of the home will need to pay for mortgage insurance. Mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to get. But, it increases the cost of your loan. If you are required to pay mortgage insurance, it will be included in your total monthly payment that you make to your lender, your costs at closing, or both.
Mortgage insurance, no matter what kind, protects the lender – not you – in the event that you fall behind on your payments. If you fall behind, your credit score may suffer and you can lose your home through foreclosure.
Can I put down less than 20% and not pay MI?
Many of today’s buyers do not have the necassary cash to put down the traditonal 20% for the home. As home prices rise this will become harder to achieve for the average American, step in St.John Realty Group By KAM Financial & Realty, Inc.
5% Down – NO Mortgage Insurance!
If you don’t want to deal with theFHA and PMI or Fannie Mae and the monthly MI costs added to your mortgage payment. You can apply for one of our 5% Down, NO MI piggy-back purchase home-loans.