PMI in lending

With so many different programs out there for lending the options sometimes seem endless. The stigma of having to put down 20% when purchasing your home is news of the past. Now with lending programs in some cases only requiring as little of 3% down to purchase a home, it has made the purchasing a home even that much more easy for those who thought it was unattainable. With the low down payment comes Private Mortgage Insurance (PMI), because of the fact purchasers put down so little money the bank needs to take out insurance on your loan in case of default. This translates to extra money being paid each month for that policy, or can be paid off in many different ways as you’ll learn in the video.