Private Mortgage Insurance (PMI) is extra insurance that lenders require for loans that are more than 80% of a new home's value. In other words, buyers that provide less than 20% for their down payment are usually required to pay PMI.
While it may seem like an additional expense, private mortgage insurance provides an opportunity for buyers with little cash to experience home ownership. It protects lenders like Jersey Mortgage Company against losses if a loan is defaulted on, while giving more people access to home ownership. Our home loan professionals have been personally working with families from NY, NJ, and CT for decades to make this happen for many who never thought home ownership would be a reality for them.
We’ve helped thousands of people get into their new homes with as little as a 3 to 5% down payment. This means that you can buy a home sooner without waiting years to accumulate a larger down payment. The cost of private mortgage insurance is divided into two parts. The first part is a payment made at the time of closing. The second is an ongoing payment made each month with your principal and interest payment.
Also referred to as "Traditional Mortgage Insurance" BPMI is insurance issued by a private company that protects the lender against loan default. BPMI is generally required by lenders for borrowers with a down payment of less than 20% of the home purchase price, allowing you to get into your new home with less cash.
Best for those:
For more information related to private mortgage insurance, see: